BANKING GENERAL KNOWLEDGE
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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to provide money for a firm to expand its business
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to provide money for the federal government to pay its degts
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to provide money for local government to finance public projects
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to provide money for individuals who are willing to take high risks
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Detailed explanation-1: -Municipal bonds (munis) are debt securities issued by state and local governments. These can be thought of as loans that investors make to local governments, and are used to fund public works such as parks, libraries, bridges and roads, and other infrastructure.
Detailed explanation-2: -What are municipal bonds? Municipal bonds (or “munis” for short) are debt securities issued by states, cities, counties and other governmental entities to fund day-to-day obligations and to finance capital projects such as building schools, highways or sewer systems.
Detailed explanation-3: -Municipal bonds are issued by local and state governments to help fund public projects or municipal government operations, like building new schools or repairing city sewer systems.
Detailed explanation-4: -When state and local governments need to borrow money, they often do so by selling municipal bonds-promises to pay investors a fixed amount of money at a future date.
Detailed explanation-5: -When you buy a municipal bond, you are loaning money to the issuer in exchange for a set number of interest payments over a predetermined period. At the end of that period, the bond reaches its maturity date, and the full amount of your original investment is returned to you.