Financial security which is tax exempted and issues by state governments to individuals is classified as?

Question

Financial security which is tax exempted and issues by state governments to individuals is classified as?

U.S treasury bonds
mortgages
municipal bonds
corporate bonds

LohaHridoy

5 views

2025-01-04 04:42

1 Answers

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AhmedNazir · Accepted Answer · 2022-09-01T13:21:41+06:00

Answer: Option 3

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.