The type of bonds which is fully backed by credit and faith of issuer is classified as __________?
Correct answer: C. general obligation bonds
- A. general obligation tax
- B. general obligation savings
- C. general obligation bonds
- D. general obligation notes
Explanation
General obligation bonds are supported by the issuer's full faith, credit, and taxing power rather than by a specific revenue-producing asset. The other choices are not the standard name for this category.
Report an error
The more specific you are, the faster it gets fixed. A source beats an opinion.
Prefer email? support@testustad.com
About Business Finance
Business finance explains how organisations plan, obtain and use money while balancing risk, return and liquidity. Topics include financial statements, time value of money, budgeting, working capital, capital structure, sources of finance, investment appraisal and cost of capital. Capital budgeting evaluates long-term projects, whereas working capital manages day-to-day operations.
Practise Business Finance
975 free Business Finance MCQs from Management Sciences, each with the correct answer and an explanation. Unlimited attempts, no account needed.
Exams that ask Management Sciences questions like this
Management Sciences is on 2 papers prepared for on TestUstad, and all of them draw the same bank, so this question is worth knowing for every one of them.
More Business Finance questions
The single bid auction of TIPS securities mean that all bidders _____________?
The call premium is added to face value of the bond to calculate: _____________?
The investors who want cash flows in near terms shows preference for__________?
The price of treasury notes and treasury bonds without including accrued interest is classified as ____________?
As compared to public issues, the interest premiums on privately placed issues overtime have _____________?
The bonds rated lower than triple-B bonds by the 'Standard and Poor's' are considered as ______________?