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.
Revenue bondholders receive their interest and principal payments from _______.
Choose wisely. There is only one correct answer.
Project income. Payments come from these revenues.
2.
Factories are likely to be financed by which of the following type of revenue bond?
Choose wisely. There is only one correct answer.
Industrial. Industrial revenue bonds fund factories.
3.
Revenue bonds pay more interest than general obligation bonds because their revenue-producing abilities cannot be predicted with certainty.
Choose wisely. There is only one correct answer.
True. To compensate, revenue bonds offer higher interest.
4.
Bond analysts study the _______of a project so that the project's ability to repay bondholders can be evaluated.
Choose wisely. There is only one correct answer.
Cash flow. Studying cash flow helps a bond analyst determine revenues.
5.
A city wishing to build a toll road would finance it with a revenue bond rather than a general obligation bond.
Choose wisely. There is only one correct answer.
True. Revenue bonds fund facilities that produce revenues, such as tolls.