SIE practice questionmediumMunicipal Bonds - GO Bonds
Which of the following secures municipal general obligation bonds?
- ARevenue from a specific project
- BUser fees
- CThe taxing authority of the issuer✓ Correct answer
- DMortgage collateral
Explanation
Why C — The taxing authority of the issuer
GO bonds are secured by the issuer's taxing power. Revenue bonds rely on project revenues or user fees, while mortgage collateral backs mortgage bonds.
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