GFOA Exam CPFO Topic 8 Question 95 Discussion

Actual exam question for GFOA's CPFO exam

Question #: 95
Topic #: 8

Revenue bonds are a liability limited to the pledged revenue. The issuer is thus not obligated _________ to repay the debt.

ALevy taxes

BGeneral fund revenues

CBoth of these

DNone of these

Show Suggested Answer

Suggested Answer: C

by Rebecka at Aug 25, 2024, 07:28 AM

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Yaeko

3 months ago

Option C makes the most sense. The issuer is free from those financial obligations when it comes to revenue bonds.

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Sylvia

3 months ago

Haha, looks like the issuer is off the hook! C is the way to go on this one.

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Devora

2 months ago

It's a smart way to finance projects without burdening taxpayers.

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Willow

2 months ago

So the issuer doesn't have to rely on taxes or general fund revenues.

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Malissa

2 months ago

That's right, revenue bonds are limited to pledged revenue.

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Aja

2 months ago

I agree, C is the correct answer.

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Elinore

3 months ago

Definitely C. Revenue bonds are self-supporting, so the issuer doesn't have to dip into other revenue sources to pay them back.

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Ciara

3 months ago

C) Both of these

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Heike

3 months ago

B) General fund revenues

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Nidia

3 months ago

A) Levy taxes

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Cassi

3 months ago

I agree with Tammi and Val. The correct answer is C) Both of these because revenue bonds are specifically tied to pledged revenue.

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Val

4 months ago

I see your point, Tammi. It makes sense that the issuer is not obligated to repay the debt using general fund revenues.

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Tammi

4 months ago

I disagree, I believe the answer is C) Both of these because revenue bonds are limited to pledged revenue.

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Josue

4 months ago

D seems too broad. I'd go with C - the issuer is not obligated to use either taxes or the general fund to repay revenue bonds.

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Flo

4 months ago

I think the answer is A) Levy taxes.

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Leontine

4 months ago

I think the correct answer is C. Revenue bonds are limited to the pledged revenue, so the issuer is not obligated to use either taxes or general fund revenues to repay the debt.

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Hobert

3 months ago

It's a smart way for municipalities to finance projects without putting their general budget at risk.

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Jacki

4 months ago

That's correct, the issuer is not on the hook to use taxes or general fund revenues to repay the debt with revenue bonds.

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Simona

4 months ago

I agree, revenue bonds are specifically tied to the revenue generated from the project they were issued for.

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