Series 65 Exam Lesson 23 Quiz

This is a Series 65 Exam Lesson 23: a free quiz for Series 65 Exam Lesson 23 Quiz which is covering Fixed Income. Try it and see how you do if you need help listen to the lesson over.

Series 65 Lesson 23 Quiz

This is a Series 65 Lesson 23 Quiz which is covering Municipal Debt. Try it and see how you do if you need help listen to the lesson over.

Questions covered include

Questions:

Below are questions based on the previous lesson. Choose the letter of the correct answer.

To take the quiz online, click here.

1. Which is NOT a characteristic of municipal bonds?

A. They are issued by the states, local government, and political subdivisions.

B. They are issued in fully registered or book-entry forms.

C. They do not obtain legal opinion when they are issued.

D. All of the above are characteristics of municipal bonds.

2. How are municipal bonds issued today?

A. They are issued as bearer bonds.

B. They are issued as serial bonds.

C. They are issued both as bearer bonds and serial bonds.

D. They are issued neither as bearer bonds nor serial bonds.

3. The interest on qualified municipal bonds are always exempted from federal tax.

A. True

B. False

4. It is done by a bond counsel who examines the issue to determine if the municipal bond is legally binding on the issuer and that the interest is exempt from federal tax under the current law.

A. constitutional limiting

B. feasibility study

C. legal opinion

D. trust indenture

5. A bond counsel giving a qualified legal opinion says that there may be problems with the issue of the municipal bond such as the exemption from federal tax.

A. True

B. False

6. Which of the following is a municipal bond?

A. moral obligation bond

B. special assessment bond

C. industrial development bond

D. all of the above

7. Which of the following does NOT secure a special tax bond?

A. ad valorem tax

B. cigarette tax

C. gasoline tax

D. liquor tax

8. The issuance of this bond is backed up by a revenue source (other than an ad valorem tax or property tax) and by the full faith and credit of the taxing authority.

A. double-barreled bond

B. general obligation bond

C. limited tax bond

D. Public Housing Authority bond

9. Short-term municipal notes have a life of less than twelve months up to three years.

A. True

B. False

10. These notes are issued at the end of the year and the taxes received at the beginning of the year will be used to pay off the issued notes.

A. grant anticipation notes

B. revenue anticipation notes

C. tax anticipation notes

D. tax exempt commercial paper

11. Step up or step down variable interest notes have interest rate that goes up or down and keeps the value of the bond basically at par.

A. True

B. False

12. Which of the following does NOT contribute to a state’s income?

A. income tax

B. real property tax

C. sales tax

D. All of the above contribute to a state’s income.

13. Which of the following is NOT a characteristic of a general obligation bond?

A. It carries the full faith and credit of the issuing municipality.

B. It carries the highest ratings and therefore the highest yield.

C. It is serviced by ad valorem taxes.

D. All of the above are characteristics of a general obligation bond.

14. Which of the following is NOT a revenue bond?

A. hospital bond

B. sewer bond

C. special assessment bond

D. water bond

15. These are used for the protection of the investor in the bonds.

A. deed covenant

B. nondiscrimination covenant

C. protective covenant

D. revenue pledge covenant

16. The element of a municipal bond that allows,