Series 7 Exam Question 40: Answer and Explanation

Question: 40

Municipal bonds settle regular way

• A. on the same day as the trade date
• B. one business day after the trade date
• C. two business days after the trade date
• D. three business days after the trade date

Correct Answer: C

Explanation:

C. Municipal securities trades settle regular way in 2 business days after the trade date (T+2, which is trade date plus 2 business days).