After an extensive feasibility study on the viability of a new shopping mall, the City of Mt. Vernon decided to issue bonds that depend on the earning requirements of the facilities. All of the following statements are true EXCEPT that:
A) rental revenues collected from shop owners within the mall will pay the bonds debt service.
B) the bonds are backed by the full faith and credit of the City of Mt. Vernon.
C) the city is issuing revenue bonds.
D) investor risk depends on the specific characteristics of the project.
Answer: B) the bonds are backed by the full faith and credit of the City of Mt. Vernon.