Municipal bonds that are secured by the full faith and credit of the issuer are referred to as which one of the following?

Question

Quizplus · Accepted Answer

General obligation bonds are backed by the full faith and credit of the issuer, which means that the issuer is obligated to use all available resources to repay the bondholders. This is in contrast to revenue bonds, which are backed by a specific revenue stream, and private activity bonds, which are backed by private entities rather than the issuer. Local taxation bonds and fully funded bonds are not commonly used terms in the municipal bond market.

Municipal Bonds That Are Secured by the Full Faith and Credit