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General Obligation Bonds Are Backed

Question 63

Multiple Choice

General obligation bonds are backed:


A) by the revenue generated from the project in which the bond proceeds are invested.
B) by the government's ability to tax its citizens.
C) by the penalty collected from the earlier repayment of a certificate of deposit.
D) by the increase in the coupon rate due to inflation adjustment.
E) by the additional principal received from exchange rate fluctuations.

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