Vidyalelo
Management · Q383

International Finance and Treasury

Graduate and Post Graduate · Management · question 383

Q383

Type of bonds which is fully backed by credit and faith of issuer is classified as

A.
general obligation tax
B.
general obligation savings
C.
general obligation bonds
Answer
D.
general obligation notes

Answer: Option C

Solution

Answer: Option C
Solution:
Type of bonds which is fully backed by credit and faith of issuer is classified as general obligation bonds. A general obligation bond (GO) is a municipal bond backed by the credit and taxing power of the issuing jurisdiction rather than the revenue from a given project.