Question

Cities and towns in Texas often see rapid population growth. Such growth requires school districts to quickly expand. In this type of situation, school districts use __________________ to borrow the necessary funds to achieve this goal.

Answer 1

Answer: Capital Appreciation Bonds

Explanation: Capital Appreciation Bonds are often called municipal securities due to backing this bonds get from the local government which makes it less risky and and restriction on its issuance. Small businesses, schools in the city and towns of Texas often take advantage of this municipal security in other to make investment and grow their businesses. capital appreciation bonds. The capital appreciation bonds are offered by businesses at low interest rate thanks to the greater security of the investment due to the backing of the local government. However, investors who get lower interest also take comfort and solace in the high security afforded to the investment.