Which of the Following Statements Is Not True Regarding Municipal

question 64

Multiple Choice

Which of the following statements is not true regarding municipal bonds?

• A) They are issued by state and local governments.
• B) They are free from the risk of default.
• C) The interest is exempt from federal income taxes.
• D) The interest is exempt from state taxes if the investor resides in the state where the bond was issued.

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Definitions:

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Enduring patterns of thought, feeling, and behavior that characterize an individual and differentiate them from others.