SIE Exam Practice Question 46

Correct Answer: A

Explanation:

Revenue bonds are municipal bonds backed by the revenue-generating capacity of the issuer. Municipal bonds backed by the full faith and credit, and taxing power, of the issuer are called general obligation bonds. Agency bonds are issued by either an agency of the US government (other than the Treasury) or a government-sponsored enterprise (GSE) and may not be fully guaranteed. Treasury notes are bonds issued by the US Treasury and are backed by the full faith and credit of the US government.