Why Would a Government Issue Revenue Bonds (Which Generally Are

question 58

Multiple Choice

Why would a government issue revenue bonds (which generally are issued at a higher rate of interest than general obligation bonds) even though the government knows that if revenues from the project are not sufficient to cover principal and interest payments, the government will use resources from general government activities to fund the principal and interest payments?

• A) Revenue bonds may not require approval of the voters.
• B) Revenue bonds may not be considered in legal debt limitations.
• C) Revenue bonds may permit the interest costs to be passed on to the users of the services financed.
• D) All of the above.

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Definitions:

Moss Sporophyte

The diploid generation of a moss that produces spores through meiosis, distinguished from the gametophyte generation by its ability to undergo sexual reproduction.

Nourishment

The food or nutrients needed by organisms to live, grow, and reproduce.

Sorus

Cluster of spore-producing capsules on a fern leaf.