Question

1) list five differences between a commercial loan and an investment security.

2) which carries the lower rate of interest?

3) describe the difference between general obligation and revenue obligation municipal securities.

Answer 1

As per policy, only one question is allowed to answer at a time, so answer first two questions here :

1&2) differences between a commercial loan and an investment security / Rate of Interest:
Scale	A Commercial Loan	An Investment security
Origin	Through the commercial banks	Through the Investment Banks .
Purpose	Against the deposits and savings received	To mobilise the purchase and sale of security
Interest rate	Higher	Lower to Commercial Loans
Risk	Less risky and government regulated.	More risky and less government regulated.
Classes	One type of security. Unilateral interest rates	The securities are divided in various classes and interest rates varies accordingly.
Preference	Public/General people	Corporate purpose