Municipal bonds are traded to finance

A. short term capital outlays

B. long term capital outlays

C. long term finance outlays

D. long term bonds outlays

Answer: Option B

Solution(By Examveda Team)

Municipal bonds are traded to finance long term capital outlays. Municipal bonds are loans investors make to local governments. They are issued by cities, states, counties, or other local governments. For that reason, the interest they pay on the bonds is tax-free.