Final answer:
The correct answer to the student's question is a. An interfund transfer.
Step-by-step explanation:
The routine movement of cash from the General Fund to a Debt Service Fund in order to provide resources for the Debt Service Fund to pay interest and principal on a bond issue is known as an interfund transfer.
Interfund transfers involve the transfer of money between different funds within an organization. In this case, the General Fund transfers money to the Debt Service Fund to meet its obligations related to bond payments.
For example, let's say a city government has issued bonds to fund a construction project. The General Fund, which receives revenue from taxes and other sources, transfers a portion of its funds to the Debt Service Fund to ensure that there are enough resources to make interest and principal payments on the bonds.