SIE practice questionmediumMunicipal Bonds - Revenue Bonds
A hospital issues a bond payable only from revenues collected for hospital services. This bond is a:
- AGeneral obligation bond
- BRevenue bond✓ Correct answer
- CCorporate debenture
- DTreasury bond
Explanation
Why B — Revenue bond
Revenue bonds are repaid from revenues generated by a specific project, such as a hospital. GO bonds are backed by taxing power, debentures are unsecured corporate bonds, and Treasury bonds are federal debt.
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