What do you call a government grant that does not need to be repaid?

What do you call a government grant that does not need to be repaid?

• A. Grants
• B. Subsidies
• C. Loans
• D. Tax Relief

Answer: (B)

A grant is money given by the government for a specific purpose that doesn’t have to be paid back. That non-repayment is what makes it different from other forms of help. Subscriptions and subsidies are also government support, but they’re aimed at lowering costs or encouraging certain activities rather than being a one-off gift for a particular project. Loans, on the other hand, must be repaid, usually with interest. Tax relief isn’t extra cash either; it reduces the amount of tax owed. So the term for a government payment that you don’t have to repay is a grant.

A grant is money given by the government for a specific purpose that doesn’t have to be paid back. That non-repayment is what makes it different from other forms of help. Subscriptions and subsidies are also government support, but they’re aimed at lowering costs or encouraging certain activities rather than being a one-off gift for a particular project. Loans, on the other hand, must be repaid, usually with interest. Tax relief isn’t extra cash either; it reduces the amount of tax owed. So the term for a government payment that you don’t have to repay is a grant.