A
A high-interest commercial loan extended to a foreign government for infrastructure projects
B
A non-repayable financial transfer provided by one government to another for developmental projects
C
A short-term currency swap arrangement meant exclusively for balance of payment stabilization
D
A conditional equity investment by multilateral banks in private sector entities abroad
Correct answer: (b) A non-repayable financial transfer provided by one government to another for developmental projects
Explanation
Option B is correct as grant assistance refers to non-repayable financial aid given for developmental purposes. The other options describe loans, equity investments, or currency swaps rather than grants.
Same topic · past papers
UPSC has asked this before
These previous-year questions sit on the same topic. Open one to practise the earlier ask.