Understanding Government Grants

What is the primary purpose of government grants as discussed in the introduction?

• To reduce government spending

• To assist citizens and stimulate the economy

• To privatize public services

• To increase taxes

How is a grant generally defined?

• A tax deduction

• A mandatory government fee

• A financial award given for a specific purpose

• A loan that must be repaid

What distinguishes a government grant from other types of grants?

• It is always repaid with interest

• It is given by private companies

• It is only available to large corporations

• It is a financial award given by the government for social relief or economic stimulation

What is a key characteristic of conditional grants?

• They can be used for any purpose

• They are only available to individuals

• They come with specific conditions on how they should be used

• They have no specific purpose

Which type of grant allows recipients to use funds for any purpose they choose?

• Conditional grants

• Unconditional grants

• Project-specific grants

• Social grants

What is the main focus of project-specific grants?

• Providing social relief

• Supporting large corporations

• Funding specific projects like housing or climate change

• General economic support

What is the role of the South African Social Security Agency (SASSA)?

• To collect taxes

• To administer social grants in South Africa

• To provide loans to businesses

• To regulate private companies

Which of the following is NOT a type of social grant available in South Africa?

• Child support grant

• Business development grant

• Old age pension

• Care dependency grant

Why do governments prefer to issue grants?

• To promote international trade

• To increase their revenue

• To assist those in need and stimulate the economy

• To reduce public services

What is one of the reasons governments issue grants to non-profit organizations?

• To reduce their operational costs

• To increase their profits

• To allow them to offer services for the greater good

• To promote international expansion