The municipal bonds are traded to finance _____________?
Correct answer: B. long term capital outlays
- A. short term capital outlays
- B. long term capital outlays
- C. long term finance outlays
- D. long term bonds outlays
Explanation
Municipal bonds generally finance long-lived public projects such as roads, schools, and water systems, which are long-term capital outlays. Short-term operating needs are normally financed through municipal notes instead.
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