Which term describes noncash goods and services provided to needy individuals by the federal government?

• A. Monetary transfers
• B. Tax credits
• C. In-kind benefits
• D. Public housing subsidies

Answer: (C)

Noncash goods and services provided to needy individuals by the federal government are described as in-kind benefits. This term covers assistance delivered as actual goods or services rather than cash that recipients can spend freely. Examples include food assistance, housing subsidies, and medical care programs like Medicaid. The defining idea is that the government furnishes something tangible or a service directly, rather than giving money.

Monetary transfers are direct cash payments, which is why they don’t fit. Tax credits reduce tax liability instead of delivering a tangible good or service. Public housing subsidies are a specific example of in-kind benefits, but the general category that encompasses all such noncash assistance is in-kind benefits.