Temporary imbalances between operating receipts and operating expenditures are funded with help of

A. state bonds

B. federal bonds

C. municipal bonds

D. reserve bonds

Answer: Option C

Solution(By Examveda Team)

Temporary imbalances between operating receipts and operating expenditures are funded with help of municipal bonds. 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.