The interest earned on loans to state and local governments is _____

Question

Quizplus · Accepted Answer

Loans to state and local governments typically have lower interest rates than loans to other borrowers. This is because these entities are considered to have lower credit risk and are less likely to default on their loans. Additionally, the interest earned on loans to state and local governments is typically exempt from federal income taxes, which further lowers the interest rates these borrowers pay.

The Interest Earned on Loans to State and Local Governments