Q214
Bonds that are backed by cash flow from project and are sold to finance particular project are classified as
A.
finance bonds
B.
revenue bonds
AnswerC.
financing bonds
D.
project bonds
Answer: Option B
Solution
Answer: Option B
Solution:
Bonds that are backed by cash flow from project and are sold to finance particular project are classified as revenue bonds. Revenue bonds are municipal bonds that finance income-producing projects and are secured by a specified revenue source. Typically, revenue bonds can be issued by any government agency or fund that is managed in the manner of a business, such as entities having both operating revenues and expenses.