Many Savers Are Willing to Accept a Lower Interest Rate

question 32

Multiple Choice

Many savers are willing to accept a lower interest rate on municipal bonds than on comparable instruments because

• A)the after-tax yield on municipal bonds is greater.
• B)municipal bonds invariably have lower default risk.
• C)municipal bonds are more liquid than most other instruments.
• D)the yield on municipal bonds is considered inflation proof.

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Definitions:

Geographic Areas

Specific physical locations on the Earth's surface, defined by natural or artificial boundaries.

Functional Departments

Organizational units within a company, built around specific tasks, areas of expertise, or operations, such as marketing, finance, or human resources.

Ethics Competency

The ability to understand and apply ethical principles and values to professional conduct and decision-making.

Enron

An American energy company based in Houston, Texas, that became infamous for its complex financial fraud leading to its bankruptcy in 2001.