Governments Are Required to Return Arbitrage Profits to the Federal

Multiple Choice

Governments are required to return arbitrage profits to the federal government. What are arbitrage profits?

A) Amounts charged in excess of costs incurred for public services
B) Bond proceeds invested at a rate of return exceeding the bond interest rate
C) Returns on investments of tax dollars, in excess of the prime rate
D) Bond proceeds used to finance projects not approved in the legal budget