Vidyalelo
Management · Q225

International Finance and Treasury

Graduate and Post Graduate · Management · question 225

Q225

Source of funds for repayment of municipal bonds is considered as

A.
local tax and revenue
Answer
B.
global tax and revenue
C.
print notes
D.
commercial notes

Answer: Option A

Solution

Answer: Option A
Solution:
Source of funds for repayment of municipal bonds is considered as local tax and revenue. Municipal bonds (or “munis” for short) are debt securities issued by states, cities, counties and other governmental entities to fund day-to-day obligations and to finance capital projects such as building schools, highways or sewer systems.