Q355
Municipal bonds are traded to finance
A.
short term capital outlays
B.
long term capital outlays
AnswerC.
long term finance outlays
D.
long term bonds outlays
Answer: Option B
Solution
Answer: Option B
Solution:
Municipal bonds are traded to finance long term capital outlays. 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.