How Do Local Governments Typically Finance Large Construction Projects,such as Retrofitting

question 43

Multiple Choice

How do local governments typically finance large construction projects,such as retrofitting hospitals to be safe in earthquakes,fixing aging community facilities,or expanding schools?

• A)by getting jumbo loans from a bank
• B)by selling bonds that must be paid back with interest
• C)by raising taxes to pay for each project
• D)by contracting with developers and then charging fees to users of the facilities

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Definitions:

Pension Benefit Guaranty Corporation

A U.S. government agency that protects the retirement incomes of American workers in private sector defined benefit pension plans.

Defined Benefit Pension Plans

Retirement plans promising a specific benefit at retirement, which is usually calculated through formulas involving salary and years of service.

Other Postretirement Benefits

Benefits, other than pensions, provided to employees after they retire, such as health insurance.

Accrual Basis

An accounting method that records income and expenses when they are earned or incurred, regardless of when cash transactions happen.