Which of the Following Statements Is True of Borrowing Money

question 1

Multiple Choice

Which of the following statements is true of borrowing money?

• A)Bonds are financial instruments issued by federal governments and bought by state governments.
• B)The power to borrow money for the long term does not require any voter approval.
• C)In most cases, revenue bonds require voter approval.
• D)State and local bonds are attractive to investors because the interest they earn is exempt from federal income tax.
• E)Private businesses can borrow money at a lower interest rate than state and local governments can.

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