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

---

Definitions:

Pietra Dura

Stonework inlaid with precious and semiprecious stones.

Taj Mahal

An iconic ivory-white marble mausoleum in Agra, India, built by Mughal Emperor Shah Jahan in memory of his wife Mumtaz Mahal.

Inlaid Decorative Stonework

The art of creating designs or patterns on objects, especially floors and walls, by setting pieces of stone, marble, or other materials into a surface.

Ashoka at Kalinga

Refers to the transformation of Emperor Ashoka, who embraced Buddhism after witnessing the violence of his conquest of Kalinga.