Question

The largest type of municipal bonds outstanding is ________. Group of answer choices revenue bonds industrial development bonds Treasury STRIPS convertible bonds general obligation bonds

Answer 1

Answer:

The correct answer is letter "A": revenue bonds.

Explanation:

Revenue bonds usually called municipal revenue bonds are issued by a local government agency that operates as a business. Major projects such as the construction of bridges or highways support municipal revenue bonds. These bonds are repaid by the taxation of those resources which represents the largest income for local governments.

Answer 2

Answer:

revenue bonds

Explanation:

A revenue bond is a Municipal bond used to fund projects that yield income and are secured through a particular source of revenue.

Characteristics of revenue bond.

1. It takes long time to maturity.

2. It yields more returns than the general obligation bond.

The purpose of a revenue bond is so that government can finance projects that generates income such as toll roads, airports, seaports, electricity projects, water projects etc.