Question

Role of Investments Quick Check
5 of 55 of 5 Items
Question
Which of the following illustrates how foreign aid differs from foreign investment?(1 point)
Responses

Foreign aid involves the transfer of money to address economic, military, and humanitarian situations.
Foreign aid involves the transfer of money to address economic, military, and humanitarian situations.

Foreign aid involves the exchange of domestic capital for foreign land, capital, and labor.
Foreign aid involves the exchange of domestic capital for foreign land, capital, and labor.

Foreign aid provides the capital that developing countries need to increase economic output.
Foreign aid provides the capital that developing countries need to increase economic output.

Foreign aid involves the transfer of money from one country to another.

Answer 1

The correct response that illustrates how foreign aid differs from foreign investment is:

**Foreign aid involves the transfer of money to address economic, military, and humanitarian situations.**

Foreign aid is primarily focused on supporting countries in need, whereas foreign investment typically involves investing capital in a foreign country to earn a return, which may include purchasing land, establishing businesses, or other financial ventures.