Aid, Debt And Economic Development
- 1.Foreign aid can be broadly defined as any assistance that is given to a country that would not normally be provided by:
- A.
Governments
- B.
Market forces
- C.
NGOs
- D.
All of the above.
- 2.Official Development Assistance (ODA) is:
- A.
Provided by a government.
- B.
Provided by a official government agency.
- C.
Characterized by development objectives.
- D.
All of the above options are correct.
- 3.Which of the following is an example of unofficial aid?
- A.
Money provided by US Aid Agency through bilateral agreements
- B.
Money provided by Aus Aid.
- C.
Money provided to a country by an NGO like World Vision
- D.
None of the above options are correct.
- 4.What are three forms of humanitarian or grant aid?
- A.
Food Aid
- B.
Medical Aid
- C.
Emergency Aid
- D.
All of the above options
- 5.The OECD is an abbreviation for
- A.
Organization for Economic Country Development
- B.
Organization for Economic Corporate Development
- C.
Overseas Economic Cooperation & Development
- D.
Organization for Economic Cooperation and Development
- 6.According to the OECD, Official Development Assistance must be:
- A.
Concessional in character and contain a grant element of at least 10%
- B.
Concessional in character and contain a grant element of at least 25%
- C.
Concessional in character and contain a grant element of 7%
- D.
Concessional in character and contain a grant element of 50%
- 7.In 1970 the United Nations adopted a resolution agreeing that developed countries would aim to spend _____ % of their national incomes on ODA.
- 8.In absolute dollar terms, which country is the largest donor in the world?
- A.
United States
- B.
Russia
- C.
Norway
- D.
United Kingdom.
- 9.In 2016, how may countries reached the UN target for ODA giving when expressed as a percentage of national income?
- A.
More than 10
- B.
6 countries
- C.
No countries meet the UN ODA requirements.
- D.
8 countries
- 10.Which of the following countries is the most generous with ODA, when expressed as percentage of national income?
- A.
United Kingdom
- B.
Finland
- C.
Germany
- D.
Norway
- 11.Which of the following countries, do not meet the UN target for ODA?
- A.
United Kingdom, Germany
- B.
Norway, Denmark, Sweden
- C.
Australia, United States, Canada
- D.
United Kingdom and Norway
- 12.What percentage of the US federal budget is spent on foreign aid?It is less than _________%
- 13.What is tied aid?
- A.
The recipient country must do exactly what the donor country wants.
- B.
The recipient country must buy good & services from the donor country.
- C.
The recipient country must implement a range of economic reforms to the receive assistance.
- D.
All of the above options.
- 14.What is the purpose of technical assistance?
- A.
To raise the level of technology in the country
- B.
To raise the quality of human capital by spending more on training.
- C.
To raise the level of productivity in a country
- D.
All of the above options.
- 15.Which of the following is not an example of multilateral aid?
- A.
Aid given by the International Monetary Fund
- B.
Aid given by the World Bank
- C.
Aid given by the US Aid Agency
- D.
Aid given by UNICEF
- 16.What does the C stand for in UNICEF?
- 17.In the past Japan has increased aid to small developing countries, that have provided Japan with political support to:
- A.
End commercial whaling
- B.
End the ban on commercial whaling
- C.
Continue tuna fishing
- D.
Ban nuclear testing.
- 18.Some economists have argued that tied aid is politically motivated and is no more than a ________ to industries in the developed country.
- A.
Tax
- B.
Subsidy
- C.
Giveaway
- D.
Handout
- 19.When receiving tied aid, a developing country cannot look to buy the least expensive goods and services, but instead it must buy the more ______________ goods from the donor country.
- A.
Cheaper
- B.
Practical
- C.
Luxurious
- D.
Expensive
- 20.When countries receive aid for very long periods of time, it may lead to a culture of aid:
- A.
Giving
- B.
Dependency
- C.
Corruption
- D.
Collusion
- 21.In the early 1970s commercial banks in western countries increased their loans to developing countries because:
- A.
They were compelled to do so by legislation in many countries.
- B.
They had excess funds to lend out, due to the large deposits of money from OPEC countries.
- C.
They had excess funds to lend out, due to the large deposits of petro dollars from United States
- D.
They had excess funds to lend out due to the economic boom of the early 1970s.
- 22.When developing countries borrowed money from western commercial banks in the early 1970s, what type of interest charges were applied?
- A.
Soft rates
- B.
Concessional rates
- C.
Interest rates based on the ability of the country to pay.
- D.
Market interest rates.
- 23.What happened in 1979?
- A.
There was a worldwide recession caused at least partly by a significant increase in oil prices.
- B.
Major economies experienced an economic boom with high commodity prices.
- C.
There was a worldwide recession caused by an increase in interest rates in developed countries.
- D.
There was a worldwide recession caused by the collapse of major banks in key markets.
- 24.The worldwide recession beginning in 1979, was especially difficult for developing countries, because there was a decline in ________________ prices which resulted in less hard ___________ for developing countries. What two words are missing in the passage?
- A.
Agricultural & work
- B.
Oil & cash
- C.
Commodity & currencies
- D.
Commodity & technology
- 25.What happened in 1982?
- A.
Brazil defaulted on its loan payments.
- B.
Mexico defaulted on its loan payments to western banks.
- C.
Thailand defaulted on its loan payments to western banks.
- D.
All of the above options are correct.
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