Foreign Aid to the DVCs Has Been Criticized

question 19

Multiple Choice

Foreign aid to the DVCs has been criticized

• A) because it may generate economic dependence on the IACs.
• B) because it encourages the centralization of government power over the economy.
• C) because government corruption in the DVCs causes aid to be misused.
• D) for all of these reasons.

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Definitions:

Yield to Maturity

The total return anticipated on a bond if it is held until the end of its lifetime.

Market Interest Rate

The prevailing rate at which borrowers can obtain loans and lenders can offer funds in the financial market.

Market Interest Rates

The rates of interest charged by lenders on loans or paid on deposits, which fluctuate based on demand, supply, and the overall economic conditions.

Equity Investment

Money that is invested in a company by purchasing shares of that company, typically with the expectation of income from dividends and capital gains as the stock appreciates.