Q377
Reason of default risk on municipal bonds is because of
A.
economic recession
AnswerB.
economically indexed
C.
not economically indexed
D.
active trading
Answer: Option A
Solution
Answer: Option A
Solution:
Reason of default risk on municipal bonds is because of economic recession. Economic Recession Definition. Economic recession is a period of general economic decline and is typically accompanied by a drop in the stock market, an increase in unemployment, and a decline in the housing market. Generally, a recession is less severe than a depression.