A bond backed by the full faith, credit, and unlimited taxing power of the government that issued it is called a __________ bond.
Understand the Problem
The question is asking for the term that describes a specific type of bond backed by the government's full faith and credit. The provided options suggest it is related to finance or economics.
Answer
general obligation bond
The final answer is general obligation bond.
Answer for screen readers
The final answer is general obligation bond.
More Information
A general obligation bond is secured by the full faith and credit of the issuing government and backed by its taxing power.
Tips
Don't confuse general obligation bonds with revenue bonds, which are repaid from specific projects' revenues.
Sources
- General Obligation Bond - Investopedia - investopedia.com
- Types of Municipal Debt - MRSC - mrsc.org
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