Governmental agencies may not issue debenture bonds.
Not in the chapter

Question

Quizplus · Accepted Answer

The statement is incorrect, as governmental agencies are allowed to issue debenture bonds. Debenture bonds are one type of bond that is not secured by any specific assets, but rather is backed by the issuer's creditworthiness. This type of bond is commonly used by governments and corporations to raise capital for various purposes, such as funding infrastructure projects or expanding operations.

Governmental Agencies May Not Issue Debenture Bonds