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:

Geologic Hazards

Natural events caused by geological processes, such as earthquakes, landslides, and volcanic eruptions, that can potentially endanger human lives and property.

Volcanic Eruptions

Explosive events where magma, gas, and ash are expelled from a volcano, often with significant force and impact on the surrounding environment.

Flash Flooding

Rapid and extreme flow of high water into a normally dry area, or a rapid water level rise in a stream or creek above a predetermined flood stage, often caused by intense rainfall.

Mountain Ranges

Chains or clusters of mountains that are close together in a line or a group, often formed by tectonic forces or volcanism.