Products & RisksQuestion 10 of 125
A general obligation (GO) municipal bond is backed primarily by:
a.The full faith, credit, and taxing power of the issuing municipality
b.The revenue generated by a specific project such as a toll road
c.A federal government guarantee
d.Insurance from the FDIC
Explanation
A GO bond is secured by the issuer's full faith and credit, including its ability to levy taxes to service the debt. This contrasts with a revenue bond, which is backed only by revenues from a specific facility or project.
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