Series 7 Exam Question 33: Answer and Explanation

Question: 33

Which of the following municipal securities could have a rating of MIG 2?

• A. IDR
• B. GO
• C. PHA
• D. RAN

Correct Answer: D

Explanation:

D. MIG (Moody's Investment Grade) is a rating for municipal notes (short-term municipal debt securities). Municipal notes include RANs (revenue anticipation notes), BANs (bond anticipation notes), TANs (tax anticipation notes), TRANs (tax and revenue anticipation notes), GANs (grant anticipation notes), and tax-exempt commercial paper.