The best example of why local governments raise bond money is to
а. pay for public transportation
b build a new school
C. pay government employee salaries
d. pay police officers
Please select the best answer from the choices provided
OA
OB
OC
OD

B). Build a new school.

Explanation:

Municipal bonds are characterized as the debt security that the governments(state or local) issue to raise finance(by selling these bonds in the market) and back their expenditure.

As per the question, the best example of reason for raising bond money by local governments would be to 'build a new school' as the construction projects are one of the prominent public work projects for which governments raises fund from the investors(by selling bonds to them) that backs their spending. Thus, option B is the correct answer.