Everything Else Held Constant,the Interest Rate on Municipal Bonds Rises

question 78

Multiple Choice

Everything else held constant,the interest rate on municipal bonds rises relative to the interest rate on Treasury securities when

• A)income tax rates are lowered.
• B)income tax rates are raised.
• C)municipal bonds become more widely traded.
• D)corporate bonds become riskier.

---

Definitions:

Charter

is a formal document that establishes a body or institution and defines its rights, purposes, and responsibilities.

Provincial Legislatures

The law-making bodies in the provinces of a country, responsible for creating laws and policies applicable within their respective provinces.

Charter of Rights

A document that guarantees and protects individual liberties and rights within a specified territory or nation.

Notwithstanding Clause

A legal provision indicating that certain statements in a contract may override or prevail over other clauses within the same contract or other legal documents.