All of the following statements regarding a municipality's collection ratio are true EXCEPT:
A) the collection ratio measures the municipality's property tax collections.
B) a poor collection ratio might mean the municipality is likely to default on its revenue bonds.
C) the collection ratio is calculated as follows: taxes collected divided by taxes assessed.
D) a high collection ratio is more favorable than a low collection ratio.
Answer: B) a poor collection ratio might mean the municipality is likely to default on its revenue bonds.