Series 7 Exam Question 371: Answer and Explanation

Question: 371

These municipal notes provide interim financing for a municipality that's waiting for a grant from the U.S. government.

• A. BANs
• B. TRANs
• C. GANs
• D. CLNs

Correct Answer: C

Explanation:

C. Hopefully, the "G" in "GANs" was enough to help you get the correct answer. GANs are grant anticipation notes, which a municipality issues to provide temporary financing while waiting for a grant from the U.S. government.