General Securities Sales Supervisor (Series 10) Practice Exam 2025 - Free Series 10 Practice Questions and Study Guide

The correct choice highlights the specific disclosures required for municipal confirmations, particularly the sources that underlie different types of municipal securities. For revenue bonds, details about the revenue source that backs these bonds must be disclosed to provide investors with insight into the reliability and risk associated with the bond's cash flow. Additionally, for industrial revenue bonds, it is essential to disclose the corporate guarantor's name, as this provides additional security and assurance about the obligation being serviced.

Understanding these disclosure requirements is vital because investors rely on this information to assess the risk and creditworthiness of the bonds they are considering. General obligation bonds, which are backed by the full faith and credit of the issuer, may not require the same level of detail about the source of income as revenue bonds, which are dependent on specific revenues generated by projects or enterprises. This differentiation is important because it helps inform investors of the varying levels of risk associated with different types of municipal bonds.