Munis

Question 1

What does one mill equal ?

Answer 1

1 dollar of 1k

Question 2

BD are limited to performing what two services at the same time ?

Answer 2

Financial advisory’s and underwriters of the same security

Question 3

BD who are permitted to axt as underwriters and advisors are limited to what?

Answer 3

Only accepting payment from advisory services

Question 4

Qe valorem taxes are assessed by who ?

Answer 4

Local governments states towns and cities

Question 5

Accretion does what to the cost basis of a bond?

Answer 5

Increases cost basis

Question 6

Amortization does what to a bond?

Answer 6

Decreases cost basis

Question 7

What is double barreled?

Answer 7

bond is backed by both a source of revenue and the taxing ability of the issuer

Question 8

TANs

Answer 8

short-term cash flow to meet ordinary operating expenses. notes are paid off when the city collects the expected tax revenues.

Question 9

legal opinion evaluates

Answer 9

Legality & Tax-exempt status

Question 10

BANs

Answer 10

short-term money market instruments. Interest is paid at maturity.

Question 11

What is net revenue pledge

Answer 11

operating and maintenance expenses are paid first

Question 12

What is gross revenue pledge

Answer 12

money disbursed is for payment of interest and principal

Question 13

1 basis point equals ?

Answer 13

1% of bond value