Asked by justin motley on Jun 03, 2024
Verified
A town is considering putting in a toll road that will produce revenue for the town.To provide funding,the town will sell revenue bonds.
Revenue Bonds
Bonds issued by municipalities or other governmental entities to finance projects that generate income, with the earnings used to repay bondholders.
Toll Road
A public or private roadway for which a fee is charged to use, typically used to fund maintenance and new infrastructure.
Produce Revenue
The process of generating income from business activities.
- Distinguish between general obligation bonds and revenue bonds.
Verified Answer
AC
Andrew CamiloJun 08, 2024
Final Answer :
True
Explanation :
Revenue bonds are a type of municipal bond that is secured by the revenue generated from a project or source, such as a toll road, which the bonds are issued to finance.
Learning Objectives
- Distinguish between general obligation bonds and revenue bonds.
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