Which of the Following Statements Regarding Municipal Bonds Is FALSE

question 7

Multiple Choice

Which of the following statements regarding municipal bonds is FALSE?

• A)A single municipal bond issue will often contain a number of different maturity dates.Such issues are often called multi-muni bonds because the bonds are scheduled to mature over a multiple number of years.
• B)Revenue bonds are where the local government pledges specific revenues generated by projects that were initially financed by the bond issue.
• C)Municipal bonds are sometimes also referred to as tax-exempt bonds.
• D)Bonds backed by the full faith and credit of a local government are known as general obligation bonds and are not as secure as bonds backed by the full faith and credit of the federal government.