The financial securities issued by the local and state governments are classified as _________?
Correct answer: A. municipal bonds
- A. municipal bonds
- B. reserve bonds
- C. state bonds
- D. federal bonds
Explanation
Municipal bonds are issued by state and local governments to finance public projects and services. Federal government securities are classified separately as Treasury securities.
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Business finance explains how organisations plan, obtain and use money while balancing risk, return and liquidity. Topics include financial statements, time value of money, budgeting, working capital, capital structure, sources of finance, investment appraisal and cost of capital. Capital budgeting evaluates long-term projects, whereas working capital manages day-to-day operations.
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