Which of the Following Statements Is Incorrect

question 54

Multiple Choice

Which of the following statements is incorrect?

• A) A municipal bond must pay a risk premium to compensate for the possibility of default risk.
• B) A Treasury bond must pay a slight premium to compensate for being less liquid than municipal bonds.
• C) The income earned from municipal bonds is exempt from federal taxes.
• D) All of the above are true.

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Definitions:

Honesty

The quality of being truthful, fair, and free from deceit in one's actions and statements.

Shared Leadership

A style of leadership that distributes influence among groups and individuals to achieve organizational or team goals.

Responsibility

The state or fact of being accountable or to blame for something, implying the duty to deal with something or of having control over someone.

Workgroup

A collection of individuals who come together to achieve a common goal or task, often in a professional context.