Help
Course Catalog > Bonds > 100
Bonds 107: Secured and Unsecured Bonds

Test your knowledge

Choose wisely. There is only one correct answer to each question.

0%
Keep studying!
Review your answers below to learn more.
1.
Which bond's interest and principal can be repaid by the US government?
Choose wisely. There is only one correct answer.
Treasury bond. The US Treasury sells its own bonds.
2.
The collateral behind a railroad car purchase may be the railroad car itself.
Choose wisely. There is only one correct answer.
True. Railroads commonly sell equipment trust certificates to buy new equipment. Sometimes, the collateral is the item that was bought.
3.
What secures revenue bonds?
Choose wisely. There is only one correct answer.
Revenue generated by projects funded by the bonds. This revenue is used to pay interest and principal to investors.
4.
Municipal bonds that are not backed by collateral are called _______.
Choose wisely. There is only one correct answer.
General obligation bonds. Their collateralized counterparts are called revenue bonds.
5.
Unsecured bonds are issued with the issuer's promise to offer stock options in the future.
Choose wisely. There is only one correct answer.
False. The sellers do not offer stock options to investors at a later date when issuing unsecured bonds.