SIE Exam Question 621: Answer and Explanation

Question: 621

Which of the following investments will provide tax-exempt interest if the proceeds are used to pay for qualifying education expenses?

(1) FNMA funds

(2) Series EE bonds

(3) Treasury bonds

(4) Treasury bills

• A. (2) only
• B. (1) and (2) only
• C. (2), (3), and (4) only
• D. All of the above are correct.

Correct Answer: A

Explanation:

Series EE bonds provide tax-exempt interest if the proceeds are used to pay for qualifying education expenses.