Which of the Following Statements Is TRUE

question 61

Multiple Choice

Which of the following statements is TRUE?

• A)State and local governments cannot default on their bonds.
• B)Bonds issued by state and local governments are called municipal bonds.
• C)All government issued bonds-local,state,and federal-are federal income tax exempt.
• D)The coupon payment on municipal bonds is usually higher than the coupon payment on Treasury bonds.

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Definitions:

Heart

A muscular organ in most animals, which pumps blood through the blood vessels of the circulatory system by rhythmic contraction and dilation.

Arrector Pili

Small muscles connected to hair follicles that, when contracted, cause hair to stand up, producing 'goosebumps'.

Goose Bumps

The raising of small bumps on the skin due to the contraction of miniature muscles at the base of hair follicles, usually in response to cold or fear.

Hair Follicles

The skin organ that produces hair, consisting of a small tubular cavity containing the root of a hair and located in the dermis of the skin.