SIE Exam Question 567: Answer and Explanation

Question: 567

Which of the following is a note issued in which the government borrows money to finance a project and then repays lenders with revenue generated by the same project?

• A. BAN
• B. RAN
• C. TAN
• D. TRAN

Correct Answer: B

Explanation:

A RAN (revenue anticipation note) is a note issued in which the government borrows money to finance a project and then repays lenders with revenue generated by the same project.