What Type of Bond Will Back Up the Debt Issue

question 28

Multiple Choice

What type of bond will back up the debt issue with a pledge of revenue from increased property tax revenue?

• A) Tax increment bond
• B) Non-guaranteed bonds
• C) Tax credit bonds
• D) Revenue bond

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Definitions:

Mutual Funds

Investment programs funded by shareholders that trade in diversified holdings and are professionally managed.

Maintenance Margin

The minimum equity an investor must maintain in a margin account after the purchase has been made, to keep the position open.

Initial Margin

The minimum amount of funds required to open a position in the securities market, used as a deposit to cover some of the credit risk of the counterparty.

Stop-Buy Order

A type of stock market order that buys a security once its price ascends to a specific point, usually to limit losses or enter the market at a favorable momentum.