Please indicate if the statement below is true or false. If the statement is false, indicate and make the correction to make the statement true.

6. Financing government expenditure through a user fee is similar to tax financing because in both revenue streams there is always a direct relationship between the amount of payment and the level of service received. True/False Correction to make true 7. From the point of view of the investors, revenue backed bonds are a less risky investment as compared to general obligation bonds both of which can be issued by a State or local government. True/False Correction to make true 8. A rationale for utilizing user charges on all residents to finance the cost of construction of a convention center is that this investment in the community gives individuals the option of using it in the future. True/False Correction to make true 9. The fundamental economic characteristic regarding government bonds and some private-activity bonds issued by states and localities is that the federal government does not tax the interest income received by investors, either under the individual or corporate income taxes. True/False Correction to make true 10. A categorical federal grant will restrict the utilization of the funds to a specific purpose or use. True/False Correction to make true 11. Policymakers (i.e. politicians) tend to regard fees as less appealing than taxes when debating proposals to increase revenues. True/False Correction to make true 6. Financing government expenditure through a user fee is similar to tax financing because in both revenue streams there is always a direct relationship between the amount of payment and the level of service received. True/False Correction to make true 7. From the point of view of the investors, revenue backed bonds are a less risky investment as compared to general obligation bonds both of which can be issued by a State or local government. True/False Correction to make true 8. A rationale for utilizing user charges on all residents to finance the cost of construction of a convention center is that this investment in the community gives individuals the option of using it in the future. True/False Correction to make true 9. The fundamental economic characteristic regarding government bonds and some private-activity bonds issued by states and localities is that the federal government does not tax the interest income received by investors, either under the individual or corporate income taxes. True/False Correction to make true 10. A categorical federal grant will restrict the utilization of the funds to a specific purpose or use. True/False Correction to make true 11. Policymakers (i.e. politicians) tend to regard fees as less appealing than taxes when debating proposals to increase revenues. True/False Correction to make true