The Difference Between a General Obligation and a Revenue Bond

question 5

Multiple Choice

The difference between a general obligation and a revenue bond is:

• A)The general obligation bond is backed by full faith,credit,and "taxing power" of the governmental unit
• B)That for a revenue bond,the repayment of the issue is fully dependent on the revenue-generating capability of a specific project or venture
• C)General obligation bonds are usually of high quality because of the taxing power behind most of them
• D)All of the above

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Definitions:

U.S. Senate

One of the two chambers of the United States Congress, comprising two senators from each state, tasked with legislating, advising and consenting on treaties, and confirming appointments.

Financial Backing

Support provided in the form of funds or resources to finance a project, venture, or individual.

External Mobilization

The process of engaging and rallying support from outside an organization or community to assist in achieving a specific political or social objective.

Popular Support

The level of approval or favorability among the general public for a political figure, policy, or initiative.