Series 7 Exam Question 284: Answer and Explanation

Question: 284

All of the following may be sources of revenue for a revenue bond EXCEPT

• A. property taxes
• B. user fees
• C. tolls
• D. airports

Correct Answer: A

Explanation:

A. The Series 7 examiners want to make sure you can distinguish funds raised for municipal revenue bonds from those raised for general obligation bonds. Tolls, fees, airports, power plants, water, wastewater, and so forth may all be fund generators that subsidize revenue bonds. Property taxes (ad-valorem taxes) support general obligation bonds.