Asked by Achera Weaver on Jun 14, 2024
Verified
Municipal bonds are debt obligations of the states, municipalities and political subdivisions. They are exempt from federal taxation.
Political Subdivisions
Entities established under the authority of a larger government, typically used for administrative purposes, such as counties or municipalities.
Debt Obligations
Liabilities or amounts of money that a company or individual owes to lenders or creditors.
- Understand the tax advantages of different forms of business and investment income.
Verified Answer
LR
Larissa RodriguezJun 16, 2024
Final Answer :
True
Explanation :
Municipal bonds are generally exempt from federal taxation, making them a popular choice for investors seeking tax-free income.
Learning Objectives
- Understand the tax advantages of different forms of business and investment income.
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