Disappointed with Problems Caused by Being a Recipient of Foreign

question 90

Multiple Choice

Disappointed with problems caused by being a recipient of foreign aid from donor governments, the country of Upsilon should consider

• A)refusing all future offers of aid
• B)privatizing of aid, such as receiving funds from private not-for-profit agencies
• C)becoming a donor instead
• D)seeking even more government-sponsored aid
• E)All of the answers are correct

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Definitions:

Nominal Rate

the interest rate before adjustments for inflation, often cited in loan and savings agreements.

Compounded Annually

Interest on a loan or investment is calculated once a year, with each year’s interest added to the principal for the subsequent year’s interest calculation.

Compounded Annually

The process of earning interest on an investment where the accrued interest is added to the principal sum once per year.

Nominal Rate

The nominal rate is the interest rate stated on a loan or investment agreement, not accounting for inflation or other factors that affect the real rate of return.