In a Bond Covenant, a City Agreed to Create and Maintain

question 18

Multiple Choice

In a bond covenant, a city agreed to create and maintain a $2 million reserve.These funds can be used

• A)Only to make the final year's interest and principal payments on the bonds.
• B)Only to make the interest and principal payments on the bonds in a year in which the city is unable to make the required debt service payments from other resources.
• C)To make either the final year's interest and principal payments on the bonds or in the event that the city is unable to make the interest and principal payments on the bonds.
• D)By the city as it chooses since it legally belongs to the city.

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Definitions:

Ambivalence

The state of having mixed feelings or contradictory ideas about something or someone.

Debilitating Illness

A disease or condition that significantly impairs the physical or mental ability of an individual, affecting their day-to-day functioning.

Paid Labor Force

People who are in employment and get paid for their labor, unlike volunteers or those interning without pay.

Sex Ratio

The demographic and statistical ratio of males to females in a population; this measure is often used to examine social, economic, and environmental impacts on gender dynamics.