Aid, Debt And Economic Development

35 Questions | Total Attempts: 167

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Economic Development Quizzes & Trivia

Questions and Answers
  • 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.