What type of bonds are secured by a jurisdiction's full faith and credit and unlimited taxing power?

The correct choice pertains to Unlimited Tax General Obligation Bonds, which are backed by the issuing jurisdiction's full faith and credit, as well as its unlimited taxing power. This means that the government has the authority to levy taxes without limitation to ensure that bondholders are repaid.

These bonds are typically used to finance public projects such as schools, roads, and infrastructure, providing a strong assurance to investors of their repayment since the local government has a reliable source of revenue to meet its obligations. The full faith and credit backing means that the jurisdiction is committed to honoring its debts, making these bonds a lower-risk investment.

In contrast, Limited Tax General Obligation Bonds would only be secured by a limited tax, potentially making them riskier for investors since there is a cap on the amount of taxes that can be raised for repayment. Revenue Bonds, on the other hand, are tied to specific revenue-generating projects and do not have the same guarantee of payment from the full taxing authority of the jurisdiction. Impact Fees refer to charges imposed on new development projects to finance the infrastructure needed due to growth, and they do not constitute a type of bond. Thus, the choice of Unlimited Tax General Obligation Bonds accurately reflects the nature of the financial security offered.