Expert answer:foreign aid

Expert answer:please answer the following multiple choice questions attached below. A/ Which of the following criticisms of aid is the least accurate?#1Foreign aid is often abused by corrupt officials, and can even give rise to increased corruption as the potential benefits are greater.#2Foreign aid reduces a country’s competitiveness in the international marketplace and may even reduce its level of development, as it damages domestic industries and leads to dependence on imports.#3While tied aid can be limited in its effectiveness, conditional aid (which comes with recommended policies and projects from donor countries) has proven successful at combining foreign development expertise with foreign aid.#4Economically more developed countries have pledged to provide at least 0.7% of their GNIs for aid, but few do so.B/ Which of the following is not an example of humanitarian aid?#1Foreign direct investment#2Expertise personnel#3Monetary grants#4Food and medical suppliesC/ Which of the following is not a goal of development aid?#1Increasing the overall standards of living#2Reducing unemployment#3Reducing poverty#4Improving educationD/ Which of the following is a negative effect of foreign aid?#1Over-dependence#2High unemployment#3High inflation#4Capital flightE/ Which of the following statements about aid and trade is the most accurate?#1While trade can be a key tool in economic development, many countries need foreign aid in order to escape the poverty cycle and develop to the point that they can compete internationally.#2All of the options#3While trade-oriented development strategies could be very effective for economically less developed countries, the proliferation of protectionist barriers to trade means that in reality foreign aid often has more of a direct impact.#4Aid is a much less effective development strategy than a focus on international trade, as aid leaves economically less developed countries dependent and unable to foster long-term development.F/ Which of the following is a problem with tied aid?#1It could force domestic firms out of business#2It creates a current account surplus#3Most of the money goes into the pockets of the ruling elite#4It leads to high inflation
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