Investors seeking tax-exempt income should invest in

Question

Quizplus · Accepted Answer

Municipal bond funds invest in bonds issued by state and local governments, which are generally exempt from federal income tax and sometimes state and local taxes. This can provide investors with tax-exempt income, making municipal bond funds a good choice for those seeking tax benefits. Index funds and government bond funds may not provide the same level of tax benefits, and money market funds may not offer as high a yield on tax-exempt income.

Investors Seeking Tax-Exempt Income Should Invest in