FINRA Series 6

Answer: B - Currency exchange risk is the only risk listed that would not be associated with a municipal bond fund. Municipal bond funds invest only in bonds of state and local governments in the U.S., so there is no exposure to exchange rate fluctuations. Like corporate bonds, municipal bonds have varying degrees of credit risk. Investors are also exposed to reinvestment risk since interest payments received may have to be reinvested at lower interest rates if rates have been falling.