Which of the following best contrasts general obligation bonds and revenue bonds used to fund the different levels of government in Texas?(1 point) Responses General obligation bonds charge a percentage of a good’s value, while revenue bonds charges a percentage of a property’s value. General obligation bonds charge a percentage of a good’s value, while revenue bonds charges a percentage of a property’s value. General obligation bonds are only charged at the local level, while revenue bonds are charged at the state and local levels. General obligation bonds are only charged at the local level, while revenue bonds are charged at the state and local levels. General obligation bonds are intended to pay back losses by providing a service, while revenue bonds are meant to raise revenue. General obligation bonds are intended to pay back losses by providing a service, while revenue bonds are meant to raise revenue. General obligation bonds use taxes to pay back debts, while revenue bonds use revenue from public works.

Question

GPT-4o mini · Answer

The statement that best contrasts general obligation bonds and revenue bonds used to fund different levels of government in Texas is:

General obligation bonds use taxes to pay back debts, while revenue bonds use revenue from public works.

This accurately reflects the fundamental difference between the two types of bonds: general obligation bonds are backed by the taxing power of the issuer (usually a municipality or state), while revenue bonds are repaid from the income generated by specific projects or services such as tolls, fees, or service charges.