All monetary transfers or kinds sent by migrants to their place of origin are called ______.
Show answer & explanation
Correct answer: B
Explanation
The correct answer is option 2 i.e. remittances.
Remittances:
- Remittances are usually understood as financial or in-kind transfers made by migrants to friends and relatives back in communities of origin.
- These are the sum of two main components:
- Personal Transfers in cash or in-kind between resident and non-resident households and Compensation of Employees, which refers to the income of workers who work in another country for a limited period.
- Remittances help in stimulating economic development in recipient countries, but this can also make such countries over-reliant on them.