All of the following would be considered when evaluating a municipal revenue bond's creditworthiness EXCEPT:
A) management expense.
B) competing facilities.
C) collection ratio.
D) coverage ratio.
Answer: The collection ratio shows the percentage of property taxes that are actually collected. This would be relevant in evaluating GO bonds, which are backed by the taxing authority of the issuer. Revenue bonds, however, are backed by user fees, not taxes.