A local government in Montana issued bonds to the general public to build a community park in the locality.The primary objective of the proposed community park is to enhance the green cover in the locality.Which of the following best describes the bonds issued in this scenario?

Question

Quizplus · Accepted Answer

General obligation bonds are issued by municipalities and are backed by the credit and taxing power of the issuing jurisdiction rather than the revenue from a given project, such as a community park. This makes option A the correct choice, as the bonds are likely issued with the promise to use general tax revenues to repay the bondholders, rather than relying on revenue generated from the park itself.

A Local Government in Montana Issued Bonds to the General