Highly Touted Structural Adjustment Programs (SAPs) Have Turned Out to Be

question 29

Multiple Choice

Highly touted Structural Adjustment Programs (SAPs) have turned out to be

• A) used by dictatorial leaders to divert much needed funds to their own use.
• B) not very helpful, because most recipients take the money associated with the loan and never carry out the reforms they are supposed to make.
• C) one means of getting rid of power-hungry individuals in a few places.
• D) helpful in countries that want to implement major reforms.
• E) most useful to women who need startup money for new businesses.

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Definitions:

Investments

Assets purchased for the purpose of generating income or profit, including stocks, bonds, and real estate.

Average Rate of Return

A financial metric used to assess the profitability of an investment, measuring the average annual return compared to the initial investment cost.

Present Value

The current value of a future amount of money or stream of cash flows, given a specified rate of return.

Capital Investment Analysis

The process of evaluating and comparing the potential returns of making a new investment in capital assets, considering factors like cost, risks, and future cash flows.