Most municipal bonds are revenue bonds rather than general obligation bonds.

Question

Quizplus · Accepted Answer

Revenue bonds are issued to fund specific projects or facilities, and their repayment is funded by revenue generated by the project or facility. General obligation bonds, on the other hand, are backed by the full faith and credit of the issuing municipality and are repaid using a variety of revenue sources, including taxes. While some municipalities issue general obligation bonds, most municipal bonds are revenue bonds.

Most Municipal Bonds Are Revenue Bonds Rather Than General Obligation