Municipal

# Municipal Bonds > Exam weight context (sourced from FINRA 2025 Series 7 outline): Municipal securities are tested throughout Function 3 (Provide Clients with Investment Recommendations and Strategies), which accounts for 73% / 91 of the 125 scored questions. Key rules directly cited in the 2025 outline for municipal securities: MSRB Rule G-19 (Suitability of Recommendations); MSRB Rule G-30 (Prices and Commissions); MSRB Rule G-32 (Disclosures in Connection with Primary Offerings); MSRB Rule G-37 (Political Contributions / Pay-to-Play). The MSRB writes rules for muni dealers; FINRA enforces for broker-dealers; banking regulators enforce for banks. --- ## General Obligation (GO) Bonds General Obligation bonds are municipal bonds backed by the full faith, credit, and taxing power of the issuing government entity (state, county, city, or school district). When an issuer cannot meet debt payments, it can raise taxes to cover the obligation — which is what makes GO bonds among the safest category of municipal debt. Voter approval is required before a municipality can issue GO bonds, because the bond pledges the taxing power of the issuer and ultimately obligates taxpayers. This democratic check limits supply and contributes to GO bonds' lower yields compared to revenue bonds. Unlimited tax GO bonds can raise taxes without a statutory cap. Limited tax GO bonds are backed by taxing power constrained to a specific maximum rate — slightly riskier than unlimited tax bonds. Analogy: A GO bond is like borrowing money and putting your salary as collateral. Your lender knows you have the power to earn income (tax) to repay, which makes the loan safer than…