Which of the Following Statements Is Incorrect

question 27

Multiple Choice

Which of the following statements is incorrect?

• A)The municipal bond must pay a risk premium to compensate for the possibility of default risk.
• B)The 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:

Visionary Organization

An entity that leads with foresight and innovation, anticipating future trends and preparing for changes ahead of its competitors.

Organizational Strategies

Broad-based plans or approaches adopted by a business or organization to achieve its long-term goals and objectives.

Organizational Tactics

Specific actions or strategies that an organization employs to achieve its objectives and navigate its business environment.

Core Values

Fundamental beliefs or principles that guide an organization's internal conduct as well as its relationship with the external world.