SIE practice questionmediumMunicipal Bonds in Account Types
A client wants to hold tax-free municipal bonds. In which type of account can this be accomplished?
- AOnly IRAs
- BOnly custodial accounts
- CAny taxable brokerage account, including individual or joint✓ Correct answer
- DOnly margin accounts
Explanation
Why C — Any taxable brokerage account, including individual or joint
Municipal bonds can be held in any standard brokerage account: individual, joint, custodial, or retirement. There is no limitation to only custodial, IRA, or margin accounts.
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