Which of the following is a typical responsibility of the revenue bond?

A typical responsibility of a revenue bond is to finance a specific revenue-generating project. Revenue bonds are issued with the expectation that the project they fund will generate income sufficient to pay off the bondholders. This income often comes from the revenues generated by the project itself, such as tolls from a toll road, fees from a utility service, or lease payments for a public facility.

This type of financing is distinct from general obligation bonds, which are backed by the full faith and credit of the issuing governmental entity and can be used for a broader range of purposes, including funding general government expenses. Revenue bonds are specifically structured to provide funding for projects that will create ongoing revenue streams, making them a key tool for public agencies looking to invest in infrastructure or services that have clear revenue potential. Thus, financing a specific revenue-generating project aligns perfectly with the role of a revenue bond.