What is the key difference between a general obligation bond and a revenue bond?

1. AA general obligation bond is backed by the issuer’s taxing power, while a revenue bond is backed by specified project or enterprise revenues✓ Correct answer
2. BRevenue bonds must be issued by corporations only
3. CGeneral obligation bonds are always taxable
4. DOnly revenue bonds can be underwritten

Reading one answer is not the same as being ready

Lucky the Banker is a free practice app with 477+ Series 79 questions, weak-area tracking, and timed mock exams. No credit card, no paywall.

• Which regulator primarily writes rules for municipal securities dealers?
• Why are rating agency presentations important in many debt deals?
• What is an official statement in a municipal offering?
• What is the function of a trustee in a public debt offering?