What Type of Impact Investment Fund Is the Second Fund

question 50

Multiple Choice

What type of impact investment fund is the second fund invested in a company that sets up water purification plants in rural villages, where the plants are owned by the local community and operated by the installation company, which sells the purified water to the village at affordable rates? The installation company also trains local entrepreneurs to develop businesses that deliver water to neighboring villages.

• A)sustainable trade financing
• B)low-income housing
• C)clean energy access
• D)clean drinking water

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Definitions:

Total Surplus

The sum of producer and consumer surplus, representing the total net benefit to society from the production and consumption of goods and services.

Equilibrium

A state where supply equals demand, and the market is at rest.

Producer Surplus

The difference between the amount that producers receive from the sale of a good or service and the minimum amount they would accept.

Equilibrium Price

The equilibrium price is the market price at which the quantity of goods supplied is equal to the quantity of goods demanded, leading to market balance.