Series 7 Exam Question 189: Answer and Explanation

Question: 189

This type of municipal fund security is also know as a qualified tuition plan.

• A. ABLE accounts
• B. LGIPs
• C. Section 529
• D. TANs

Correct Answer: C

Explanation:

C. Municipal fund securities include ABLE accounts, LGIPs (local government investment pools), and Section 529 plans. 529 plans are also known as qualified tuition plans because they allow money to be put aside by investors for qualified educational expenses.