Final answer:
General Obligation (GO) bonds are backed by the full faith, credit, and taxing power of the government entity issuing them. They are repaid using the revenue generated from taxes.
Step-by-step explanation:
General Obligation (GO) bonds are a type of bond issued by government entities at various levels, including states, cities, and counties. These bonds are backed by the full faith, credit, and taxing power of the issuing government entity.
This means that the government entity pledges to use its taxing authority to repay bondholders and fulfill its financial obligations. The revenue generated from taxes, such as property taxes, sales taxes, or income taxes, is used to make payments on the GO bonds.