16
AssignmentMultiple Choice

Understanding College Savings

Question 16 • ***CPS Online Personal Finance fall – 3-2027

Which statement best defines a grant?

Answer
A
A grant is an educational plan in which students alternate between studying for school and gaining work experience.
B
A grant is a loan offered to students to help pay for education-related expenses.
C
A grant is money given by an organization for a specific purpose.
D
A grant is a loan offered to anyone who is thinking about attending college.

Explanation

A grant is money provided by an organization for a specific purpose, such as education or research. Unlike the loans described in choices B and D, a grant generally does not have to be repaid.

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