CFA Practice Question

There are 233 practice questions for this study session.

CFA Practice Question

The purchase of green bonds is an example of ______.

A. best-in-class
B. thematic investing
C. impact investing
Correct Answer: C

Green bonds finance projects aimed at energy efficiency, pollution prevention, sustainable agriculture, and fishery and forestry protection. Their tax-exempt status provides a monetary incentive to tackle prominent social issues such as climate change and a movement to renewable sources of energy.

User Contributed Comments 2

User Comment
Rohule i think this is thematic
Agarcia7 I originally thought thematic as green bond provokes that notion, but 1) the project scope of these bonds is wide and not a singular stated theme and 2) the nature of these bonds is to create impact.
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