Financial security which is tax exempted and issues by state governments to individuals is classified as___________?
Correct answer: C. Municipal bonds
- A. U.S treasury bonds
- B. Mortgages
- C. Municipal bonds
- D. Corporate bonds
Explanation
Municipal bonds are issued by states and local governments and often receive tax advantages, particularly exemption from federal income tax. Treasury bonds are issued by the federal government, while corporate bonds are issued by companies.
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