Why Should Governments and NGOs Consider Switching from Food Transfers

question 21

Multiple Choice

Why should governments and NGOs consider switching from food transfers to cash transfers?

• A) Corruption
• B) Distributing food discourages development by driving down local food prices and discouraging local agricultural production
• C) Distributing food discourages development by driving up local food prices and discouraging local agricultural production
• D) Governments should never switch from food to cash transfer programs

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Definitions:

Guaranty Contract

A legal agreement where a guarantor agrees to fulfill the financial obligations of a debtor to a lender, in case the debtor fails to do so.

Suretyship Contract

An agreement whereby a party (surety) guarantees the performance of an obligation by another party (principal) to a third party (obligee).

Primarily Liable

The main party responsible for fulfilling an obligation or settling a debt in legal or financial contexts.

Secondarily Liable

Refers to a party who is indirectly responsible for a debt or obligation, where primary liability lies with another party, but the secondary party may be called upon to fulfill the obligation if the primary fails to do so.