The Interest Earned on a State or Local Government Bond

question 21

True/False

The interest earned on a state or local government bond is exempt from federal taxation.

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Definitions:

Market Transaction

An exchange of goods, services, or financial assets in return for money between parties within a marketplace.

Emission Control Devices

Technologies or equipment installed on vehicles or industrial plants to reduce pollutants released into the atmosphere.

External Costs

Costs that are not borne by the parties involved in an economic transaction but by other individuals or society at large.