SIE practice questionhardMunicipal Bonds - GO vs. Revenue
A municipal revenue bond is backed by:
- AUnlimited taxing power
- BProject-generated income, not taxes✓ Correct answer
- CFederal government guarantees
- DGeneral property taxes only
Explanation
Why B — Project-generated income, not taxes
Revenue bonds are paid from project revenues; GO bonds use taxes. Revenue bonds have no federal guarantee and are not backed by property tax alone.
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