The City of Harrisonburg issues revenue bonds to improve the city's water and sewer systems. These bonds would be best described as being backed by:
A) nothing.
B) the full faith and credit of the issuer.
C) a specific revenue stream of the issuing entity.
D) property taxes that are assessed by the local government.

Question

Quizplus · Accepted Answer

Revenue bonds are specifically backed by the revenue generated from the project they finance, such as water and sewer system fees in this case, rather than the general credit or taxing power of the issuing entity.

The City of Harrisonburg Issues Revenue Bonds to Improve the City's