A state turnpike authority is more likely to issue revenue bonds than a city that issues bonds to finance a school expansion.

Question

Quizplus · Accepted Answer

A state turnpike authority would issue revenue bonds to finance projects like highways or bridges, where the income generated from tolls can directly pay back the bondholders. In contrast, a city financing a school expansion would more likely issue general obligation bonds, which are repaid from general tax revenues, not specific project revenues.

A State Turnpike Authority Is More Likely to Issue Revenue