A Major Criticism of Foreign Aid to Developing Nations Is

question 73

Multiple Choice

A major criticism of foreign aid to developing nations is that it:

• A) Is capital saving rather than capital intensive
• B) Provides incentives for a brain drain
• C) Encourages corruption and misuse of funds
• D) Gives too much power and control to the International Monetary Fund

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Definitions:

Currency Swap

Involves an agreement to exchange principal and interest in one currency for the same in another currency.

Foreign Currency Approach

A method used in global finance and investment analysis that involves evaluating investments or financial statements in a foreign currency.

Net Present Value

The difference between the present value of cash inflows and the present value of cash outflows over a period of time, used to evaluate the profitability of an investment.

Pakistani Rupees

the official currency of Pakistan, symbolized as PKR.