Question

14. Which of these best supports a government taking part in a debt-for-nature swap?
a. It increases the input of foreign countries.
b. It decreases national security.
c. It increases the amount of land eligible for settling and harvesting.
d. It decreases national debt.

Answer 1

Government taking part in a debt-for-nature swap by decreasing national debt.

Answer: Option D

Explanation:

Debt for nature swap is a collection of the financial transactions in which a portion of the debt of the developing countries which was taken by a developed country is forgiven by the developed country and the portion that is forgiven is used for the development of the economy of the developing nation by investing in the economy and also taking up steps to save the environment of the developing country from that money. Therefore it is very important for a government of a developing nation.