What is a Grant?

What is a Grant?

• A. Money given that does not need to be repaid.
• B. Money borrowed with interest.
• C. A tax incentive.
• D. A subsidy for farmers.

Answer: (A)

Grants are funds given to someone or to a project with no requirement to repay. They’re provided by governments, charities, or international organizations to support activities like development work, education, or research. Because there’s no obligation to pay back, grants differ from loans, which must be repaid with interest. They’re also not tax incentives, which lower the amount of tax owed, and they aren’t necessarily targeted subsidies for a specific sector like farming.

Grants are funds given to someone or to a project with no requirement to repay. They’re provided by governments, charities, or international organizations to support activities like development work, education, or research. Because there’s no obligation to pay back, grants differ from loans, which must be repaid with interest. They’re also not tax incentives, which lower the amount of tax owed, and they aren’t necessarily targeted subsidies for a specific sector like farming.