General-obligation bonds are

Question

Quizplus · Accepted Answer

General-obligation bonds are backed by the jurisdiction's full faith and credit, and are paid off with the jurisdiction's regular revenues. Revenue bonds (choice A) are backed by the revenue generated by a specific facility or project. User fees (choice B) are collected for use of that facility or project and are used to pay off the revenue bonds. Special revenues (choice D) are revenues earmarked for a specific purpose, and are typically used to pay off revenue bonds, not general-obligation bonds.

General-Obligation Bonds Are