Interest on Most Bonds Issued by States Is Usually Exempt

question 84

Multiple Choice

Interest on most bonds issued by states is usually exempt from:

• A) State income tax but not federal
• B) Federal income tax but not state
• C) Both state and federal income taxes
• D) City income taxes

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Definitions:

Prefix

a syllable or word that is added to the beginning of another word to alter its meaning or create a new word.

Similar

Resembling without being identical; having qualities in common or a close resemblance.

Same

Identical; exactly alike or equal in some specified quality or characteristic.

Likeness

The state, quality, or fact of being similar or akin to something else.