Column #1
All municipal advisors must update form MA every year within __________ of the end of the fiscal year.
90 Days
Transportation Bonds, Special Tax Bonds, and Special Assessment Bonds are all types of ________ bonds.
Revenue
Prices for T-Notes & T-Bonds are quoted on _________.
A percentage of par value.
What does an inverted yield curve mean?
What happens if the discount rate is increased?
The money supply will decrease, and rates will increase.
If an issuer is new to the market and is looking to offer a bond with a complex and unique structure, he would likely want to engage in _____________ underwriting.
Negotiated
T-Bills are quoted on a __________ basis.
Discounted yield
What does a Housing Finance Agency Issue?
Mortgage Credit Certificates provide a nonrefundable federal income tax credit for some mortgage interest.
Serial Bonds are typically quoted at _____.
On a yield-to-maturity basis.
What is intermediation?
The ability of banks to attract deposits and extend credit.
What happens if margin requirements increase?
The money supply will decrease, and rates will increase.
What is the budget deficit a product of?
Fiscal policy and cyclical fluctuations.
What is fiscal responsibility?
Having a balanced budget, rainy-day funds, budget surpluses, and reducing expenditures
Describe a typical flow of funds.
Which of the following statements is true regarding an undivided account?
A. Once the syndicate member has sold all of his bonds, he bears no responsibility
B. Once the syndicate member has sold all of his bonds, he must also sell the bonds of the syndicate member with the lowest % of bonds sold
C. Once the syndicate member has sold all of his bonds, he is responsible for his % of unsold bonds in addition to his own.
D. Every syndicate member has an equal amount of bonds they are responsible for selling.
C. Once the syndicate member has sold all of his bonds, he is responsible for his % of unsold bonds in addition to his own.
Which of the following responsibilities does a Placement Agent have?
I. Places new securities with investors on behalf of an issuer
II. Solicits municipalities to invest assets with investment professionals
III. Sets the variable rate of interest that investors will receive for a VRDO
IV. Markets securities tendered by bondholders to investors
The City of Baltimore will be extending the current energy plant system for the downtown area. Which of the following accounts would fund to support this project be held in?
A. Operation and Maintenance Fund
B. Replacement and Renewal Fund
C. Construction Fund
D. Reserve Maintenance Fund
C. Construction Fund
What are some advantages to a bank loan?
Describe the structure of municipal notes.
A feature that allows a bondholder to sell back the bond to the issuer is known as a ________.
Put Feature
All of the following are true about Standby Purchase Agreements EXCEPT:
They ensure the payment of principal and interest on the bonds
Describe the structure of Treasury Bills.
Always sold at a discount, no semi-annual payments, mature in 1 year or less, direct obligations of the U.S. Treasury.
Sally is a municipal advisor who dedicated 15 hours of volunteer time to an upcoming election as well as hosted a fundraising event. Under MSRB Rules, which of the following statements is true?
The fundraising event is a violation of MSRB Rule G-37, but the 15 hours of volunteer time is not.
What are financial disclosure notes for derivatives broken down into?
Government activities, business activities, and fiduciary activities
What happens if PPI exceeds anticipated levels?
Signals an increase in inflation which can lead to a decline in the bond market (prices fall)