Final answer:
Rule D-12 defines municipal fund securities as Local Government Investment Pools, Section 529 College Savings Plans, and ABLE accounts. These investment types are evaluated based on expected return, risk, and liquidity.
Step-by-step explanation:
Rule D-12 of the MSRB (Municipal Securities Rulemaking Board) defines municipal fund securities in three ways. The first type is Local Government Investment Pools (LGIPs), which are similar to money market funds but are for the use of municipalities. The second are Section 529 College Savings Plans, designed to help families set aside funds for future college costs. The third category consists of Achieving a Better Life Experience (ABLE) accounts, which are tax-advantaged savings accounts for individuals with disabilities and their families. Investors often consider the expected rate of return, the risk, and the liquidity of these investment options, as these factors affect the desirability and suitability of the securities for different investors.