SIE Exam Question 816: Answer and Explanation

Question: 816

A __________ is issued by a governmental body to finance a specific project. It is not backed by the full faith and credit of the issuing body.

• A. general obligation bond
• B. multi-purpose bond
• C. private activity bond
• D. revenue bond

Correct Answer: D

Explanation:

A revenue bond is issued by a governmental body to finance a specific project. It is not backed by the full faith and credit of the issuing body. Instead, debts are repaid from revenue generated from the project that was financed.