Question

Which of the following would NOT be a reason for a municipality to issue revenue bonds versus general obligation bonds? (A) Current legislation at the state level requires the self-sufficiency of projects of this nature. (B) Statutory debt limitations are usually enforced on revenue bonds. (C) User fees are expected to support the project once completed. (D) Only certain members of the community will use the project.

Answer 1

The answer is: D) Statutory debit limitations are usually enforced on revenue bonds.

Step-by-step explanation:

Revenue bonds are municipal bonds that finance income-producing projects and are secured by a specified revenue source. Typically, revenue bonds can be issued by any government agency or fund that is managed in the manner of a business, such as entities having both operating revenues and expenses.

Therefore, this is the only possible answer.