The obligations of state and local governments
A)are taxed at the federal level, but not at the state and local levels.
B)are taxed at the state and local levels, but not at the federal level.
C)are taxed at the state, local, and federal levels.
D)are called municipal bonds.

Question

Quizplus · Accepted Answer

Municipal bonds are obligations of state and local governments, and they are typically exempt from federal taxes, and often from state and local taxes as well, depending on the jurisdiction.

The Obligations of State and Local Governments