AGA Exam CGFM Topic 3 Question 54 Discussion

Actual exam question for AGA's CGFM exam

Question #: 54
Topic #: 3

Revenue bonds are a liability limited to the pledged revenue. The issuer is thus not obligated _________ to repay the debt.

ALevy taxes

BGeneral fund revenues

CBoth of these

DNone of these

Show Suggested Answer

Suggested Answer: C

by Mira at Aug 28, 2024, 10:58 AM

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Tiera

3 months ago

C, both A and B. The issuer is not obligated to use either taxes or general fund revenues. They're practically free to do whatever they want, right?

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Jennie

3 months ago

D, obviously. Revenue bonds don't touch the general fund or taxes. That's like using a water gun to put out a forest fire.

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Gail

2 months ago

D) None of these

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James

2 months ago

C) Both of these

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Lanie

2 months ago

B) General fund revenues

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Karima

2 months ago

A) Levy taxes

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Rutha

3 months ago

A? Levy taxes? That's like asking a toddler to pay off a mortgage. Come on, this can't be that easy!

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Louvenia

2 months ago

B) General fund revenues

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Paz

2 months ago

C) Both of these

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Troy

3 months ago

A) Levy taxes

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Ayesha

3 months ago

I see your point, Nida. But I think the answer is B) General fund revenues because revenue bonds are not backed by the general fund.

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Nida

3 months ago

I disagree, I believe the answer is C) Both of these because revenue bonds are specifically tied to pledged revenue.

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Rosio

4 months ago

I think the answer is A) Levy taxes.

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