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.

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

____________________________________________________________________________________