A bond backed by the full faith, credit, and unlimited taxing power of the municipality that issued it is called a ____________ bond.

Question

Quizplus · Accepted Answer

A general obligation bond is backed by the full faith, credit, and taxing power of the municipality that issued it. In other words, the municipality pledges to repay the bondholders from whatever revenue sources it may have available, including taxes. This type of bond is considered to be one of the safest investments because of the strong backing behind it.

A Bond Backed by the Full Faith, Credit, and Unlimited