Official Answer Key & Detailed Solution
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Correct Answer: Option (B) — 1, 2 and 3 are correct
Concept & Option Breakdown
Standard Reference VerifiedOfficial bilateral development cooperation primarily takes three forms:
- Statement 1 is correct: Technical assistance involving capacity building and expertise.
- Statement 2 is correct: Concessional/soft loans with long repayment periods and low interest rates.
- Statement 3 is correct: Direct non-repayable grants for social sectors.
- Statement 4 is incorrect: Food assistance is generally given as humanitarian grants during emergencies, not as bilateral commercial loans to be paid back.
Eliminate statement 4: Intergovernmental developmental assistance does not involve 'food assistance to be paid back'. Removing 4 leaves only option (b).
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