A Variable Rate Demand Bond (VRDB)

question 44

Multiple Choice

A variable rate demand bond (VRDB) :
I. Is a long-term security
II. Has interest payments linked to the level of short-term interest rates
III. May periodically be sold back to the issuer at face value
IV. Is tax-exempt

• A) I only
• B) I and II only
• C) I, II, and III only
• D) I, II, III, and IV

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Definitions:

Penumbra of Protection

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Bill of Rights

The first ten amendments to the United States Constitution, guaranteeing fundamental civil rights and liberties such as freedom of speech, assembly, and worship.

Free Exercise Clause

A provision in the First Amendment to the U.S. Constitution that prohibits the government from interfering with an individual's right to practice their religion.

Establishment Clause

A section of the First Amendment to the U.S. Constitution prohibiting the government from establishing an official religion.