Question

Standard revenue bonds are:________

a) bonds backed by mortgages.
b) always offered with a best efforts offering.
c) backed by the U.S. Treasury.
d) backed by the full taxing authority of the municipality.
e) collateralized by the earnings from a specific project.

Answer 1

e) collateralized by the earnings from a specific project.

Step-by-step explanation:

• Revenue Bond is a municipal bond that supports the proceeds from a specific project such as a toll bridge, highway or local stadium.
• Revenue bonds are municipal bonds that finance projects that generate income and are secured by a designated source of income.
• Generally, Revenue Bonds can be issued by any governmental entity or fund that is managed in a business manner such as entities for both operating income and expenditure.