How are federal and state projects,such as roads and schools,typically financed?
A) Municipal bonds
B) Common stock
C) Angel investors
D) Corporate bonds
E) TARP loans

Question

Quizplus · Accepted Answer

Federal and state projects such as roads and schools are typically financed through municipal bonds. Municipal bonds are debt securities issued by state and local governments to fund public projects. The bonds are backed by the government's ability to levy taxes, and they offer tax-free income to investors. The proceeds of the bond issuance are used to finance the construction and maintenance of public infrastructure such as schools, highways, bridges, and public facilities. Municipal bonds are a popular way for governments to finance public projects because they offer a low-cost source of capital and help spread out the cost of large projects over time.

How Are Federal and State Projects,such as Roads and Schools,typically