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How much do you actually know about impact investing? 

Test your impact investing knowledge with our short quiz.

Quiz Questions

  • 1.
    Which of the following is not true about impact investing?
    • A.
      You can shape the makeup of your impact investing portfolio 
    • B.
      Angel investing is a type of impact investment 
    • C.
      You have to be wealthy to be an impact investor
      (Correct Answer)
      Explanation: Impact investing is possible across a wide range of income levels, and you don't have to be super wealthy to do it. You can make an impact investment with $25 or $25 million!
    • D.
      You can use personal or institutional capital 
  • 2.
    True or false: ESG and SRI mean the same thing.
    • A.
      True
    • B.
      False
      (Correct Answer)
      Explanation: Although ESG and SRI are similar concepts, they have different definitions. ESG is a measure of a company's environmental (e.g. climate, waste, energy), social (human rights, labor and safety practices) and governance (transparency, diversity) record. ESG scores allow potential investors to gauge a company's commitment to socially responsible practices. SRI stands for socially responsible investing. It is the practice of using negative and positive screens to determine what - and what not - to invest in. If an investor only wants to invest in companies with favorable ESG scores, or wants to ensure that she is not invested in tobacco or firearms, she is practicing socially responsible investing.
  • 3.
    A person crafting an impact investment policy should 
    • A.
      Talk to their financial advisor 
    • B.
      Determine how much money they want to invest, how long they want to invest it for, and their target rate of return 
    • C.
      Decide which social and/or environmental issues they want their money to address
    • D.
      All of the above
      (Correct Answer)
      Explanation: An impact investing policy helps you detail what sort of impact investing you want to do and how you want to do it. It can be a formal policy or merely a set of guidelines and guard rails, and is best discussed with your financial advisor.
  • 4.
    What percentage of women control household investing decisions? 
    • A.
      62%
    • B.
      37%
    • C.
      13%
      (Correct Answer)
      Explanation: Only 13% of women actively control household investment decisions. While women exert tremendous control over household spending (about 80% of consumer choices are influenced by women), household investment choices are made largely by men.
    • D.
      4%
  • 5.
    Which of the following is not a type of impact investing?  
    • A.
      Contributing to a crowd-funded venture 
    • B.
      Banking with a sustainable or community bank 
    • C.
      Donating to a charity you believe in 
      (Correct Answer)
      Explanation: Philanthropy's great, but it's a one-time use of your dollars, and that's not the same as impact investing.
    • D.
      Participating in shareholder activism 
  • 6.
    True or false: impact investing means I'll earn a lower financial return. 
    • A.
      True 
    • B.
      False 
      (Correct Answer)
      Explanation: It is possible to earn market rate returns from impact investments. Some investors choose to accept a lower rate of return in order to achieve greater social impact.
  • 7.
    True or false: I can change the makeup of my 401k to make it more impactful. 
    • A.
      True
      (Correct Answer)
      Explanation: You can contact your retirement fund administrator to discuss ways to bring more public market impact investments into your 401k.
    • B.
      False 

Quiz Outcomes

  • 1.
    0 to 2 correct:
    You're just getting started! 
    You're at the outset of your impact investing journey, and we're glad you're along for the ride! Dive into our site to learn more about how you can match your money with your values and invest for better.
  • 2.
    3 to 5 correct:
    You're on your way! 
    Your impact investment knowledge game is strong, but the best way to learn more is by actually doing impact investing IRL. So dive right in - we're here to help!
  • 3.
    6 to 7 correct:
    You're an impact investing pro!
    Nice work, whiz kid! It's time to put your knowledge into action through your investment choices. So don't wait - match your money with your values and make the choice to invest for better.