What is your view on this student's response from the example on school lunches? Please see below.

The example involves a public school cafeteria serving lunch. Some students pay full price for their food, but others receive lunch for a reduced price or for free under the federal National School Lunch Program. For simplicity's sake, let's assume the school cafeteria meets all nutritional requirements to qualify for NSLP - all it needs to do now is serve the lunches. The grant is expenditure driven - when the school district proves the reduced price and free meals have been provided, the federal government owes it a grant payment. (Again, we'll ignore the part of the program that involves school districts receiving free food products from the USDA to use in the meals.)

Student's Response: The school and student are conducting a nonexchange transaction when the school provides a lunch valued at X for free to the student. I base this on the GASB definitions of the two types of transactions. Exchange transactions are those in which each party receives and gives up essentially equal. Nonexchange transactions are those in which a government gives or receives value without directly receiving or giving equal value in exchange. The student receives a meal, so the school (government) provided value. However, the school did not directly receive any value from the student.