Municipal Bonds
Which type of municipal bond is backed by the taxing authority of the issuer?
General obligation (GO) bonds are backed by the full faith and credit of the issuer, including its power to levy taxes. Revenue bonds are backed only by income from a specific project, not by taxing authority.
Complete Analysis & Legal Rationale
General obligation (GO) bonds are backed by the full faith and credit of the issuer, including its power to levy taxes. Revenue bonds are backed only by income from a specific project, not by taxing authority.
Distractor Autopsy (Why Other Options Are Traps)
FINRA exam writers design incorrect distractors using specific calculation mistakes and regulatory misconceptions. Review why each option succeeds or fails:
Does not match the governing securities rule described in the explanation.
Does not match the governing securities rule described in the explanation.
Matches the verified teaching point in the explanation.
Does not match the governing securities rule described in the explanation.
Official Standard: Outline-level citation: item maps to Series 7 topic coverage. Prefer a specific FINRA/SEC/MSRB rule citation in a later author pass.