Which Statement About the Bonds Offered by State and Local

Multiple Choice

Which statement about the bonds offered by state and local government is INCORRECT?

A) The construction of public university and school buildings, prisons, or mental health institutes are usually financed from bond purchaser revenues.
B) General obligation bonds have the 'full faith and credit" of the general treasury behind the promise that bondholders will be repaid.
C) State and local governments commonly offer two kinds of bonds: general obligation bonds and revenue bonds.
D) Like general obligation bonds, revenue bonds have the resources of the general treasury behind them.
E) Governments may take on short-term debt, usually for a year or less.