Q10 · UPSC current affairs · 22 September 2026 · News · Jaffna Cultural Centre Governance Trust

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In financial and developmental diplomacy, what does 'Grant Assistance' signify?

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.

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