A bond backed by the full faith, credit, and unlimited taxing power of the government that issued it is called a ____________ bond.

Question

Quizplus · Accepted Answer

A general obligation bond is secured by the full faith, credit, and unlimited taxing power of the government that issued it. This means that the government is legally obligated to repay the bondholders, and it can raise taxes or take other measures to generate revenue in order to meet its obligations. Other types of bonds, such as revenue bonds, are backed by the revenue generated by a specific project or source, but they do not have the same level of security as general obligation bonds.

A Bond Backed by the Full Faith, Credit, and Unlimited