Which Statement About the Bonds Offered by State and Local

question 27

Multiple Choice

Which statement about the bonds offered by state and local government is INCORRECT?

• A)The construction of public university and school buildings, prisons, or mental health institutes are usually financed from bond purchaser revenues.
• B)General obligation bonds have the 'full faith and credit" of the general treasury behind the promise that bondholders will be repaid.
• C)State and local governments commonly offer two kinds of bonds: general obligation bonds and revenue bonds.
• D)Like general obligation bonds, revenue bonds have the resources of the general treasury behind them.
• E)Governments may take on short-term debt, usually for a year or less.

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Definitions:

Unimodal

Describing a distribution with a single peak or mode, representing the most frequently occurring value.

Empirical Rules

A set of guidelines that indicate how the data are spread in a normal distribution, specifically stating that approximately 68%, 95%, and 99.7% of the data fall within one, two, and three standard deviations from the mean, respectively.

Standard Deviations

A measure of the amount of variation or dispersion of a set of values, indicating how much the values differ from the mean.

Observations

Data collected or noticed during an experiment or study, often referring to the individual data points or recorded occurrences.