Tax-exempt municipal bond

There are bunch of terminologies being thrown around by different vendors and I remembered this on the actual FINRA exam questions. So, I am looking for a correction of my understanding.

Tax-exempt Municipal securities are basically Municipal Bonds, correct?

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Hi @FoxMcCloud - good question! Yes, tax-exempt municipal securities are generally municipal bonds. However, keep in mind municipalities issue more than just bonds. For example - anticipation notes (e.g. TANs/RANs/TRANs/BANs/GANs) and variable rate demand notes/obligations are two examples of municipal securities not technically considered bonds.

Hope this helps! Please let me know if any other bits of terminology need clarification.