Series 7 Exam Question 192: Answer and Explanation

Question: 192

Which of the following are factors that affect the marketability of municipal GO bonds?

I. The quality

II. Call features

III. The issuer's name

IV. Credit enhancements

• A. I and II
• B. II and III
• C. I, II, and III
• D. I, II, III, and IV

Correct Answer: D

Explanation:

D. Factors that affect the marketability (how easy it is to buy and sell) of municipal GO (general obligation) bonds are the quality, maturity date, call features, coupon rate, block size, dollar price, issuer's name, sinking fund, and credit enhancements (in other words, insurance).