ECONOMICS (CBSE/UGC NET)

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: -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-3: -Although municipal bonds pay interest that is generally exempt from federal and state income taxes, it’s not always free from all taxes.

Detailed explanation-4: -State and Local Government Series (SLGS) securities are special purpose securities that Treasury issues to state and local governments to assist with compliance of federal tax laws and IRS regulations governing the investment of cash proceeds generated from a tax-exempt bond issuance.

Detailed explanation-5: -A municipal bond, also known as muni bonds, is issued by a local government or an allied agency in order to finance public projects such as roads, airportsm schools etc. In India, guidelines for Municipal Bonds are issued by SEBI.