Income Beginner: Introduction to Municipal Bonds

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1.
The two types of municipal bonds are revenue and agency bonds.
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False. The two types are revenue and general obligation bonds.
2.
Municipal bonds are sold by all but which of the following?
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The federal government. This entity sells only US government bonds.
3.
All the earnings on a municipal bond are tax-free at the federal level.
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False. The capital gains on the sale of a municipal bond are taxable.
4.
Insured bonds pay interest rates that are _______ those of non-insured bonds.
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Lower than. The insurance makes them safer in the eyes of investors, so issuers can offer lower interest rates.
5.
Which of the following is not used to secure a revenue bond?
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Sales tax. Revenue bonds are secured by the revenues of projects they fund.