Which of the following statements regarding municipal revenue bond issues are generally TRUE?
The bonds' feasibility is dependent on the earnings potential of the facility or project.
The bonds are backed by unlimited taxing power of the issuer.
User fees provide revenue for bondholders.
Revenue bonds are most suitable for investors with high risk tolerance.
A) II and III.
B) II and IV.
C) I and III.
D) I and IV.
Answer: C) I and III.