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:

Monomer

Molecule that is a subunit of a polymer.

Glucose

A primary sugar crucial for energizing living beings and making up a significant part of numerous carbohydrates.

Cellulose

A sophisticated carbohydrate that is the main structural element of the walls of plant cells.

Enzyme Covalently Joins

Describes the process where an enzyme catalyzes the formation of a covalent bond between two molecules, playing a critical role in biochemical reactions.