Economics · International Business
What is the chief defining characteristic of official foreign development aid compared to commercial loans?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1It is provided on concessional terms with lower interest rates and longer repayment periods.✓
- 2It is provided exclusively in the form of non-repayable grants.
- 3It eliminates any future foreign exchange obligations or transaction risk.
- 4It requires the recipient nation to maintain an immediate surplus in its balance of payments.
Correct answer
It is provided on concessional terms with lower interest rates and longer repayment periods.
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