What Might Foreign Aid Include

question 100

Multiple Choice

What might foreign aid include?

• A) grants that do not have to be repaid
• B) unilateral transfers
• C) loans at market rates
• D) Foreign Direct Investment (FDI)
• E) remittances

---

Definitions:

Compound Rate

The rate at which a sum of money grows exponentially over time, considering the reinvestment of interest or earnings.

Coupon Rate

Annually, the return rate on a bond, presented as a percentage of its nominal price.

Bond's Duration

Bond's duration measures the sensitivity of a bond's price to changes in interest rates, quantified as the weighted average time until the bond's cash flows are received.

Time To Maturity

Time to maturity refers to the remaining time until a financial instrument, such as a bond or loan, reaches its scheduled end date and the principal must be repaid.