Financing Public Utilities and Debt
Structures Questions and Correct
Answers/ Latest Update / Already Graded
Debt Service
Ans: Payments required to cover borrowed funds' interest.
Operations and Maintenance
Ans: Costs associated with running and maintaining utilities.
Toll Authority
Ans: Entity managing toll roads and collecting tolls.
User Charges
Ans: Fees charged to consumers for utility services.
Water and Sewer Authority
Ans: Agency responsible for water supply and waste
management.
Revenue Debt Financing
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Ans: Funding based on future revenue generation.
Self-Sustaining System
Ans: Structure designed to cover costs through generated
revenue.
Conduit Financing
Ans: Government facilitates private access to tax-exempt
markets.
Higher Credit Rating
Ans: Better borrowing terms due to lower perceived risk.
Economic Development Projects
Ans: Initiatives aimed at improving local economies.
Certificate of Participation
Ans: Financing mechanism involving lease agreements.
Appropriation Debt
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