Reason of default risk on municipal bonds is because of

A. economic recession

B. economically indexed

C. not economically indexed

D. active trading

Answer: Option A

Solution(By Examveda Team)

Reason of default risk on municipal bonds is because of economic recession. Economic Recession Definition. Economic recession is a period of general economic decline and is typically accompanied by a drop in the stock market, an increase in unemployment, and a decline in the housing market. Generally, a recession is less severe than a depression.