What disposition is made of the permanent school fund?

• A. Invested in school district, county, state and United States bonds, and farm loans; the income from the permanent fund is distributed to the school districts
• B. Used for teacher salaries only
• C. Invested only in municipal bonds
• D. Kept in reserve without distribution

Answer: (A)

The question tests how the Permanent School Fund is used to support Wyoming’s public education system. The fund is set up so that its principal remains invested to generate income, rather than being spent outright. The investments are allowed to include bonds issued by school districts, counties, the state, and the United States, along with farm loans. The key point is that the income produced from these investments is distributed to the school districts to fund schools. This setup provides a steady, long-term funding stream for education across the state.

Why the other ideas don’t fit as well: using the fund only for teacher salaries would neglect the goal of creating enduring resources for all schools; restricting investments to municipal bonds would narrow the allowed portfolio and is not the full authorization; keeping money in reserve without distributing income would defeat the purpose of generating ongoing funds for education.