SIE Understanding Products and Their Risks Practice Question 45

Correct Answer: B

Explanation:

B: Choice B is correct because a double-barreled bond receives revenue from a project, as a revenue bond does, but is also backed by the full faith and credit of the issuing authority, as GO bonds are. Choice A is incorrect because a special tax bond is backed by specific taxes, does not have income from a revenue stream, and is not backed by the full faith and credit of the issuing authority. Choice C is incorrect because a moral obligation bond is a kind of revenue bond, which is not backed by the full faith and credit of the issuing authority. Choice D is incorrect because a private activity bond is a type of revenue bond, which is not backed by the full faith and credit of the issuing authority.