Income Beginner: Introduction to Municipal Bonds

Test your knowledge

Choose wisely. There is only one correct answer to each question.

0%
Keep studying!

Get a certificate for this quiz
Enter your name to generate a certificate that you can save or print immediately. Optionally, add your email address to have a copy of the certificate emailed to you.


Review your answers below to learn more.
1.
Why are municipal bonds sold to the public?
Choose wisely. There is only one correct answer.
To raise money to finance operations or projects. Like all forms of government bonds, municipals pay for these expenditures.
2.
The two types of municipal bonds are revenue and agency bonds.
Choose wisely. There is only one correct answer.
False. The two types are revenue and general obligation bonds.
3.
In addition to receiving income from municipal projects, some revenue bonds may be secured by _______.
Choose wisely. There is only one correct answer.
Private endowments. Individual or corporate investors may donate funds to help pay off a revenue bond issue.
4.
An insured bond carries a rating that is _______ that of a non-insured bond.
Choose wisely. There is only one correct answer.
Higher than. The insurance gives it a higher rating.
5.
What does taxable equivalent yield tell you?
Choose wisely. There is only one correct answer.
How much you'd have to earn on a taxable bond to equal what you are earning on a municipal bond. You can use the formula to figure out whether to buy a municipal or a taxable bond.