__________ are municipal bonds paid out of the general revenues of the issuer and backed by the full faith and credit of the issuer.
A)Negotiable certificates of deposit
B)General obligation bonds
C)Revenue bonds
D)Repurchase agreements

Question

Quizplus · Accepted Answer

General obligation bonds are paid out of the issuer's general revenues and are backed by the full faith and credit of the issuer. This means that the issuer pledges its full taxing power to repay the bondholders, making them a relatively low-risk investment. Revenue bonds, on the other hand, are paid out of the revenues generated by a specific project or source, such as tolls from a bridge or revenue from a hospital, and are considered a higher risk investment. Negotiable certificates of deposit and repurchase agreements are not related to municipal bonds.

__________ Are Municipal Bonds Paid Out of the General Revenues