Final answer:
General obligation bonds are municipal issues that can be impacted by debt limits; they fund public projects and are limited by a municipality's ability to raise funds.
Step-by-step explanation:
The type of municipal issue that may be impacted by debt limits is a) General obligation bonds. General obligation bonds are used by municipalities to finance public projects such as schools, roads, and parks, and they are backed by the full faith and credit of the municipality, including its taxing power.
Debt limits can constrain the amount of money a municipality can raise through these bonds, directly affecting their ability to fund these projects. Unlike Treasury bills, which are short-term debt instruments issued by the federal government, general obligation bonds are long-term and are more typically associated with municipal financing.