The amount of outstanding tax-exempt debt grew to $2.618 trillion in 2007, and money market funds continue to be the fastest-growing category of bondholders.

The $2.618 trillion figure is up 8.9% from $2.403 trillion in 2006, and 2.3% higher than the $2.561 trillion recorded for last year's third quarter, according to data released last week by the Federal Reserve as part of its quarterly flow of funds report.

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