A State Created a Housing Authority to Provide Financing for Low-Income

question 3

Multiple Choice

A state created a housing authority to provide financing for low-income housing.The authority issues bonds and uses the proceeds for that purpose.Currently the authority has outstanding $200 million in bonds backed by the state's promise to cover debt service shortages should they arise.The state constitution specifically limits the state to no more than $2 million in general obligation debt.How can the state officials defend the $200 million in debt outstanding?

• A)The debt is not general obligation debt.
• B)The state is only morally obligated for the debt.
• C)The debt is the debt of the authority, not the state.
• D)All of the above.

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Definitions:

Probability

A measure of the likelihood that a particular event will occur, often expressed as a number between 0 and 1.

Poisson Distribution

A probability distribution that measures the likelihood of a given number of events happening in a fixed interval of time or space.

Burglaries

Illegal entry into a building or other premises with the intent to commit theft, vandalism, or another crime.

Poisson Distribution

A statistical distribution that predicts the probability of a given number of events occurring in a fixed interval of time or space.