Sources of Development Finance
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Questions and Answers

What is the estimated range for a good taxes/GDP ratio?

  • Above 40%
  • 10-20%
  • 30-40%
  • 20-30% (correct)

Which source of development finance implies some control over assets beyond just investing money?

  • Taxes
  • ODA
  • FDI (correct)
  • Philanthropy

What does blended finance involve?

  • Government grants to developing countries
  • Joint investment between two governments
  • Tax incentives for international trade
  • Co-investment where the government guarantees private investor's loss or interest rate (correct)

Which type of finance involves cross-border external financing?

<p>Remittances (B)</p> Signup and view all the answers

What is the state capacity of developing countries often stuck around in terms of taxes/GDP ratio?

<p>Around 10% (D)</p> Signup and view all the answers

What is the main purpose of blended finance according to the text?

<p>To mobilize additional finance towards sustainable development in developing countries (A)</p> Signup and view all the answers

Which of the following is a risk factor that prevents sustainable investment as mentioned in the text?

<p>Seniority of loans (D)</p> Signup and view all the answers

What is the significance of concessionality in blended concessional finance?

<p>It adds value beyond what the market offers (B)</p> Signup and view all the answers

How does private money allocation differ among different income countries according to the text?

<p>It targets upper-middle-income countries mostly (A)</p> Signup and view all the answers

What is a key factor driving blended finance according to the text?

<p>Imperfect information and positive externalities (A)</p> Signup and view all the answers

Why do multilateral development banks engage in blended finance?

<p>To mobilize additional finance towards sustainable development (D)</p> Signup and view all the answers

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