The City of Washington needs to upgrade its levies and its water drainage systems. The cost will exceed the amount of tax revenue the City expects to receive over the next 10 years. How will the City be able to raise the funds needed to finance this upgrade?

Question

Quizplus · Accepted Answer

Municipal bonds are a common method for cities to raise funds for large projects. They allow cities to borrow money from investors, who are then paid back with interest. Treasury Bonds are issued by the federal government, not cities, making option A incorrect. While cities can borrow from banks (option C) or large corporations (option D), issuing municipal bonds is a direct and widely used approach for financing public projects like infrastructure upgrades.

The City of Washington Needs to Upgrade Its Levies and Its