🌍 Module 1: Climate Basics
 Module 2: Climate Action
💰 Module 3: Financial Risks & ESG
📉 Module 4: Risk Management & Supervision
🏦 Module 5: Central Banks & Monetary Policy
100

What is climate change?

  • A short-term change in weather patterns
  • Seasonal temperature fluctuations
  • Long-term changes in global surface temperature 
  • A natural cooling of the Earth over centuries
  • Long-term changes in global surface temperature ✅
100

What is mitigation?

  • Reducing emissions and enhancing carbon sinks 
  • Preparing for climate impacts through infrastructure changes
  • Avoiding climate risks by relocating populations
  • Covering the costs of climate damage after it occurs
  • Reducing emissions and enhancing carbon sinks ✅
100

What are physical risks of climate change?

  • Economic losses from extreme weather
  • Changes in consumer behavior
  • Tax increases and economic downturns
  • Changes in fashion and lifestyle
  • Economic losses from extreme weather ✅
100

Into which financial risk categories do climate risks mostly translate?

  • Credit risk, market risk, operational risk
  • Strategic risk, reputational risk, legal risk
  • Inflation risk, currency risk, interest rate risk
  • Cyber risk, technological risk, innovation risk
  • Credit risk, market risk, operational risk ✅
100

How does climate change and climate action affect central bank mandates?

  • They require central banks to set carbon prices
  • They impact financial stability and inflation
  • They increase the carbon footprint of central banks
  • They require central banks to lower their inflation target
  • They impact financial stability and inflation ✅
200

What is the natural greenhouse effect?

  • A process that cools the Earth by reflecting sunlight
  • A process where gases trap heat, keeping Earth warm 
  • A result of ozone depletion
  • A man-made effect caused by pollution
  • A process where gases trap heat, keeping Earth warm ✅
200

What is adaptation?

  • Reducing greenhouse gas emissions
  • Planting trees to absorb CO₂
  • Measures to cope with climate impacts, like building dikes
  • Switching to electric vehicles
  • Measures to cope with climate impacts, like building dikes ✅
200

What are transition risks?

  • Risks from extreme weather events
  • Risks from sudden policy and market shifts in the move to low-carbon
  • Risks from a preannounced, gradual increase of carbon prices
  • Risks from technological failures in renewable energy
  • Risks from sudden policy and market shifts in the move to low-carbon ✅
200

How can regulators incentivize financial institutions to manage climate risks effectively?

  • Offer tax breaks for green investments
  • Ban fossil fuel lending across all sectors
  • Provide access to climate-related weather data
  • Require climate risk measurement disclosures
  • Require climate risk measurement disclosures ✅
200

What is greenflation?

  • Inflation caused by trade tariffs on organic food products
  • Inflation caused by transition policies and higher prices of critical raw materials
  • A deflationary trend resulting from reduced fossil fuel consumption
  • A government policy that lowers prices of green products to encourage adoption
  • Inflation caused by transition policies and higher prices of critical raw materials ✅
300

What are the major greenhouse gases?

  • Oxygen, nitrogen, and argon
  • Hydrogen, helium, and neon
  • Carbon monoxide, sulfur dioxide and ozone
  • Carbon dioxide, methane, nitrous oxide, and water vapor 
  • Carbon dioxide, methane, nitrous oxide, and water vapor ✅
300

What do economists consider the most effective climate policy?

  • Planting trees in urban parks
  • Banning plastic bags
  • Encouraging voluntary lifestyle changes
  • Carbon taxes or cap-and-trade


Carbon taxes or cap-and-trade ✅

300

What are stranded assets in an climate context?

  • Assets that are physically inaccessible due to natural disasters
  • Assets devalued due to transition risks
  • Assets held in offshore accounts without regulatory oversight
  • Assets frozen by market regulators
  • Assets devalued due to transition risks ✅
300

What is essential for a climate stress test in finance?

  • Weather forecasts and carbon tracking
  • Climate scenarios and long-term risk analysis
  • Daily asset pricing and emissions data
  • Fossil fuel divestment and green bond investment
  • Climate scenarios and long-term risk analysis ✅
300

What are examples of greening monetary policy?

  • Buying greener asset and preferring low-carbon collateral
  • Funding climate research through lower interest rates
  • Direct subsidies for renewable energy projects.
  • Central banks buy green bonds printed on recycled paper
  • Buying greener asset and preferring low-carbon collateral ✅
400

What is a carbon sink?

  • Natural systems like forests and oceans that absorb CO₂ 
  • A machine that captures carbon
  • A place where carbon is stored underground
  • A source of carbon emissions
  • Natural systems like forests and oceans that absorb CO₂ ✅
400

What is the collective action problem in climate policy?

  • Climate change only affects a few countries
  • All countries benefit from action but prefer others to bear the cost 
  • Countries compete to emit more greenhouse gases
  • Climate policies are too expensive for developing nations

All countries benefit from action but prefer others to bear the cost ✅

400

How can ESG investors avoid greenwashing?

  • By relying on ESG labels provided by issuers
  • By conducting independent due diligence and using verified ESG data
  • By investing only in companies with high stock market performance
  • By choosing funds that advertise sustainability in their name
  • By conducting independent due diligence and using verified ESG data ✅
400

What does double materiality mean in sustainability reporting?

  • External impacts & internal risks
  • Financial performance & stakeholder perception
  • Critical & sustainable raw materials
  • Tangible assets & intangible liabilities
  • External impacts & internal risks ✅
400

What is a green tilting strategy applied to central bank portfolios?

  • Exclude all fossil fuel-related assets from their balance sheets
  • Replacing conventional assets with ESG-certified equities.
  • Investing directly in renewable energy infrastructure projects
  • Adjusting portfolio weights to favor low-carbon or green assets
  • Adjusting portfolio weights to favor low-carbon or green assets ✅
500

What are climate tipping points?

  • Points in time when climate policies are reviewed
  • Thresholds beyond which climate changes become irreversible
  • Sudden drops in global temperature due to volcanic activity
  • Locations where greenhouse gases are measured
  • Thresholds beyond which climate changes become irreversible ✅
500

What is the main goal of the Paris Agreement?

  • Limit global warming to below 2°C and aim for 1.5°C
  • To phase out fossil fuels by 2050
  • To ensure all countries achieve net-zero emissions by 2050
  • To reduce global CO₂ emissions by 50% every decade

  • Limit global warming to below 2°C and aim for 1.5°C ✅
500

When is a green investment bankable?

  • When it is profitable and low-risk
  • When it meets sustainability goals
  • When it gets public support
  • When it’s approved by regulators
  • When it is profitable and low-risk ✅
500

What is a green supporting factor in financial regulation?

  • Financial support for ESG rating for financial institutions
  • A subsidy for green technology firms
  • An exception in prudential treatment of sustainable exposures
  • A discount on capital requirements for green assets

 


  • A discount on capital requirements for green assets ✅
500

Which emission scopes should central banks assess in their carbon footprint?

  • Only Scope 1 emissions, as they are directly under the bank’s control
  • Scope 1 and Scope 2 emissions, excluding Scope 3 due to complexity
  • Scope 1, Scope 2, and Scope 3 emissions
  • Only Scope 3 emissions, as central banks do not produce direct emissions
  • Scope 1, Scope 2, and Scope 3 emissions ✅
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