35. Which of the following statements about Municipal Bonds is/are incorrect?
1. Municipality bonds can be issued by the city corporations to fund developmental projects.
2. Institutional investors cannot buy Municipal Bonds.
3. Municipal bonds are not permitted for public offering.
Correct answer code is:
35. Which of the following statements about Municipal Bonds is/are incorrect?
1. Municipality bonds can be issued by the city corporations to fund developmental projects.
2. Institutional investors cannot buy Municipal Bonds.
3. Municipal bonds are not permitted for public offering.
Correct answer code is:
The correct option is B Only 2 and 3
Municipality bonds can be issued by the city corporations to fund developmental projects. These bonds help the city corporations to directly raise funds without the help of grants from the state governments or agencies such as World Bank. Institutional investors, as well as the public, can buy Municipal Bonds.
The corporations can use the revenues earned from the developmental projects like Metro rail network to repay the interest and principal on these bonds. These municipal bonds have now been permitted for public offering by SEBI
Municipality bonds can be issued by the city corporations to fund developmental projects. These bonds help the city corporations to directly raise funds without the help of grants from the state governments or agencies such as World Bank. Institutional investors, as well as the public, can buy Municipal Bonds.
The corporations can use the revenues earned from the developmental projects like Metro rail network to repay the interest and principal on these bonds. These municipal bonds have now been permitted for public offering by SEBI
