Financial TQ – Quiz of the Day – Municipal bonds

Quiz of the Day

Municipal bonds are:

  1. Debt obligations issues by government entities
  2. A form of stock
  3. Always triple-tax free
  4. Never free of local taxes

Answer:  A. While most municipal bonds are tax-free, in one form or another, there are such things as taxable municipals.  They are used for projects consider not necessarily in the public good. Building a new football stadium would be an example of where taxable municipals might be used.

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By |2017-01-10T17:48:46+00:00October 11th, 2015|Financial Tips|