Which of the following can municipal bonds be used to build?

Municipal bonds are debt securities issued by local government entities, such as states, cities, or other special-purpose districts, to finance public projects that benefit the community. The proceeds from these bonds are typically used for projects like schools, roads, parks, and hospitals.

In this context, hospitals are a prime example of a project that can be funded through municipal bonds. When a municipality issues bonds to build a hospital, the funds raised are specifically allocated for construction, expansion, or improvement of healthcare facilities within that municipality, thereby enhancing public health and welfare.

While other options may involve infrastructure or necessary services, they do not directly relate to the traditional public projects that municipal bonds are designed to finance. For example, telephone systems and telecommunications networks are generally supported by private enterprises rather than public funding through municipal bonds. Insurance companies do not typically receive funding from municipal bonds as they operate as private financial institutions. Therefore, the use of municipal bonds specifically for funding hospitals aligns with their intended purpose of supporting communal projects that directly benefit the local population.