States and Local Governments Can Issue Bonds Where the Debt

question 17

Multiple Choice

States and local governments can issue bonds where the debt service is to be paid from so-called "dedicated" revenues such as sales taxes, tobacco settlement payments, fees, and penalty payments. These structures, are called ________, and are also referred to as dedicated revenue bonds and structured bonds.

• A) asset-backed bonds
• B) public power revenue bonds
• C) insured bonds
• D) prerefunded bonds

---

Definitions:

Operant Conditioning

A teaching process in which the force of a response is influenced by either encouragement or disciplinary actions.

Classical Conditioning

A learning process that occurs when two stimuli are repeatedly paired: a response which is at first elicited by the second stimulus is eventually elicited by the first stimulus alone.

Trial and Error

Trial and error is a fundamental method of solving problems characterized by repeated, varied attempts which are continued until success, or until the agent stops trying.

Unlearned

Pertaining to behaviors or reactions that are innate and not acquired through learning or experience.