SIE Exam Question 922: Answer and Explanation

Question: 922

Which of the following is a short-term obligation that is issued for temporary financing needs by a municipality?

• A. Bond anticipation note
• B. Guaranteed investment contract
• C. Tax anticipation note
• D. Unit investment trust

Correct Answer: A

Explanation:

A bond anticipation note (BAN) is a short-term obligation that is issued for temporary financing needs by a municipality.