Why might a town decide to issue bonds? a to save money for their residents. b to build new roads or bridges. c both a and b d neither a nor b

The correct answer is C.

On the first hand, a bond is a financial instrument issued by a debtholder, who divides the amount of his debt in participations and sells them in the financial markets. Investors purchase these bonds, therefore the issuer receives the money he needs, but now acquires a debt with the investor who has paid for the bond, and has to pay back to him. Bonds can be issued by both public and private entities. Public debt is the general namegiven to the bonds issued by public powers.

When the town goverment needs funding it can use bonds to obtain it. The money received from investors can be used to finance the amount directed to a specific project (for example, build a new road) or to use it to benefit its residents in a more direct manner (for example, through welfare programs).

thots think tootsies drink tequila