A loan counts as aid if it has a grant element of at least:
A) 10 percent.
B) 25 percent.
C) 50 percent.
D) none of the above; it never counts as a grant.

Question

Quizplus · Accepted Answer

According to the Organisation for Economic Co-operation and Development (OECD), a loan can only count as aid if it has a grant element of at least 25 percent. The grant element is the amount of the loan that does not need to be repaid and is essentially a form of aid. Therefore, option B is the correct answer.

A Loan Counts as Aid If It Has a Grant