__________ bonds are municipal bonds that are backed by the general taxing power of the state or local government.

Question

Quizplus · Accepted Answer

General obligation bonds are backed by the full faith and credit and taxing power of the government issuer. This means that the government pledges to use its taxing authority to repay the bondholders, if necessary, in order to meet its debt obligations. In contrast, revenue bonds are backed by the specific revenue streams generated by a particular project or facility, such as tolls, fees, or rents, and are therefore considered to be less secure than general obligation bonds. Tax-anticipation bonds and bond-anticipation bonds are short-term debt instruments that are often used to bridge the gap between anticipated revenue and expenditures or to finance capital projects that will be funded through longer-term bond issuances.

__________ Bonds Are Municipal Bonds That Are Backed by the General