Question

Modified True/False

Please indicate if the statement below is true or false. If the statement is false, indicate and make the correction to make the statement true!!!!!!!!!!!!!

1. General obligation bonds are less restrictive than revenue backed bonds with few limitations regarding the amount that can be issued.

True/False ____________________

Correction to make true ___________________________________________________________________________________

2. When issuing revenue backed bonds, receipts from all issuing governments sources are pledged to pay the interest and principal back to the bond purchasers.

True/False _______________________

Correction to make true

____________________________________________________________________________________

3. The theory of tax expenditures is what drives the rationale for investors to purchase State/local bonds of either type (general obligation/revenue backed)

True/False________________________

Correction to make true

___________________________________________________________________________________

4. The Federal American Recovery Act, signed into law by President Obama, provided a mechanism that achieved the goals of federal grant policy by correcting for externalities and providing for a macroeconomic stabilizing mechanism.

True/False _____________________

Correction to make true

____________________________________________________________________________________

5. Intergovernmental grants do not provide a mechanism in which you can effectively substitute the granting government’s tax revenue for that of the recipient government.

True/False ___________________

Correction to make true

____________________________________________________________________________________

6. Financing government expenditure through a user fee is similar to tax financing because in both revenue streams there is always a direct relationship between the amount of payment and the level of service received.

True/False ________________

Correction to make true

____________________________________________________________________________________

7. From the point of view of the investors, revenue backed bonds are a less risky investment as compared to general obligation bonds both of which can be issued by a State or local government.

True/False____________________

Correction to make true

____________________________________________________________________________________

8. A rationale for utilizing user charges on all residents to finance the cost of construction of a convention center is that this investment in the community gives individuals the option of using it in the future.

True/False ______________________

Correction to make true

__________________________________________________________________________________

9. The fundamental economic characteristic regarding government bonds and some private-activity bonds issued by states and localities is that the federal government does not tax the interest income received by investors, either under the individual or corporate income taxes.

True/False__________________

Correction to make true

____________________________________________________________________________________

10. A categorical federal grant will restrict the utilization of the funds to a specific purpose or use.

True/False _______________

Correction to make true

____________________________________________________________________________________

11. Policymakers (i.e. politicians) tend to regard fees as less appealing than taxes when debating proposals to increase revenues.

True/False _____________________

Correction to make true

____________________________________________________________________________________

  

Answer 1