All of the following statements regarding a negotiated underwriting are true EXCEPT that:

All of the following statements regarding a negotiated underwriting are true EXCEPT that:



A) the municipality appoints the underwriter.

B) all states require that General Obligation bonds must be underwritten using a negotiated process.

C) either municipal general obligation or revenue bonds can be underwritten on a negotiated basis.

D) the investment banker consults with the issuer to establish a price for the issue.



Answer: B)


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