Which of the Following Is Not an Example of Foreign

question 76

Multiple Choice

Which of the following is not an example of foreign aid?

• A)U.S.discount stores purchasing toys from Chinese manufacturers
• B)The International Monetary Fund extending loans to countries that have trouble with their balance of payments
• C)The World Bank providing loans and grants to support health and education programs
• D)The U.S.government providing funds to build an electricity plant in Albania
• E)The Australian government providing funds to repair highways in Tonga

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Definitions:

Cost Method

An accounting method used to recognize investments in which the investor has no significant influence over the investee, recording the investment at cost and recognizing dividends as income.

Investment Income

Refers to the money earned from various types of investments, including dividends, interest, or rent.

Equity Method

An accounting approach where an investor's stake in a company is reflected by reporting the investor's proportionate share of the company's net assets and earnings.

Joint Venture

An agreement between two or more entities to combine their assets to achieve a particular goal.