The reason of default risk on municipal bonds is because of ___________?

Related Mcqs:

1. In the dimension of default risk, the municipal bonds are considered as ___________?

   A. default risk free B. not default risk free C. not indexed D. must be indexed...

2. Bonds issued by corporations and exposed to default risk are classified as_________?

   A. Corporation bonds B. Default bonds C. Risk bonds D. Zero risk bonds...

3. Bonds issued by local and state governments with default risk are____________?

   A. Municipal bonds B. Corporation bonds C. Default bonds D. Zero bonds...

4. As compared to Treasury bonds, the trading of municipal bonds in trading market is considered as _________?

   A. more index inflation B. less indexed inflation C. less active D. more active...

5. Sum of market risk and diversifiable risk are classified as total risk which is equivalent to_______________?

   A. Sharpe’s alpha B. Standard alpha’s C. Alpha’s variance D. Variance...

6. For a taxable security, the tax exempted interest rate on municipal bonds used to determine the ___________?

   A. tax equivalent rate of return B. local rate of return C. withholding tax rate D. general sales tax rate...

7. The municipal bonds public offering is often made through the ___________?

   A. insurance companies B. index banking firm C. commercial banking firm D. stock exchange...

8. The municipal bonds are more considerable to ___________?

   A. full price investors B. household investors C. corporation investors D. clean price investors...

9. The thin trading of municipal bonds in secondary markets is because of ___________?

   A. excess of information B. lack of information C. frequent information D. infrequent information...

10. For municipal bonds, the trading in secondary markets are classified as ___________?

    A. infrequent origination B. static trading C. frequent trading D. infrequent trading...