Q918
Financial security which is tax exempted and issues by state governments to individuals is classified as
A.
U.S treasury bonds
B.
mortgages
C.
municipal bonds
AnswerD.
corporate bonds
Answer: Option C
Solution
Answer: Option C
Solution:
Financial security which is tax exempted and issues by state governments to individuals is classified as municipal bonds. Municipal bonds are loans investors make to local governments. They are issued by cities, states, counties, or other local governments. For that reason, the interest they pay on the bonds is tax-free.