Revenue bonds are intended to be payable from the revenues of an enterprise, such as tolls from a bridge or fees from a stadium. They are not backed by the full faith and credit of the government and therefore carry more risk than general obligation bonds. Option B is incorrect as revenue bonds are still in existence.

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Revenue Bonds

Question 110

Multiple Choice

Revenue bonds

A) Carry less risk than general obligation bonds.
B) Are no longer in existence.
C) Are intended to be payable from the revenues of an enterprise.
D) Are backed by the full faith and credit of the government in addition to enterprise revenues.

Correct Answer: