Series 52 - Municipal Securities Representative Mock Tests

About this course

1. Types of Municipal SecuritiesGeneral Obligation (GO) Bonds: Statutory and constitutional powers, voter approval, and backing by full faith and credit.Revenue Bonds: Feasibility studies, trust indentures, and types of facilities (Utility, Housing, Transportation, Education, Health).Special Type Bonds: Special tax, special assessment, moral obligation, double-barreled, and lease rental bonds.Municipal Fund Securities: 529 College Savings Plans, ABLE Accounts, and Local Government Investment Pools (LGIPs).Taxable Municipal Securities: Build America Bonds (BABs) and other tax-credit bonds.Short-Term Obligations: Municipal notes (TANs, RANs, TRANs, BANs) and Variable Rate Demand Obligations (VRDOs).2. Characteristics of Municipal SecuritiesYield and Price: Yield-to-maturity, yield-to-call, and relationship between price and interest rates.Call and Put Features: Optional, sinking fund, extraordinary, and mandatory calls; refunding and advance refunding (escrowed to maturity).Tax Consequences: Federal tax exemption, state and local tax status, and the de minimis rule for original issue discount (OID) bonds.Accrued Interest: Calculations for municipal bonds (30/360 day count).3. The Municipal MarketPrimary Market: Competitive vs. negotiated underwritings, the role of the syndicate, and the underwriting agreement.Secondary Market: Over-the-counter (OTC) trading, firm vs. subject quotes, and the function of the broker's broker.Analysis: Credit risk, market risk, inflation risk, and the impact of credit enhancements (insurance, letters of credit).Part II: Economic Activity, Government Policy, an