Gracie has retired after serving 40 years as a teacher. She wants to supplement her retirement savings by investing in some form of low-risk financial instrument. She, however, is particular about investing in bonds where the interest income earned would be exempted from federal income taxes. In this scenario, Gracie should invest in _____.
A) corporate stocks
B) government securities
C) preferred stocks
D) exchange traded funds

Question

Quizplus · Accepted Answer

Government securities, specifically municipal bonds, often offer interest income that is exempt from federal income taxes, making them a suitable low-risk investment for Gracie.

Gracie Has Retired After Serving 40 Years as a Teacher