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In the US, even state and local governments are allowed to sell securities. Unlike federal bonds, these bonds have better pay of interest and understand this would be that these governments can go bankrupt. However, a federal government cannot go under. Bonds sold by state and local governments have the freedom from tax. Look from a budget as if it were an inventory of finances. Most people consider they in order to have frequently of money to create a budget - but an effective budget certain...
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