Which of the following is a type of interim financing option?

The correct answer highlights the concept of interim financing, which refers to short-term funding that is typically used to meet immediate financial needs before securing longer-term financing. Bond Anticipation Notes (BANs) are a specific type of interim financing that allows an entity to borrow short-term funds in anticipation of obtaining long-term funding through the issuance of bonds.

BANs typically have a maturity of one year or less and are often issued in anticipation of future bond proceeds. This makes them an excellent option for public entities needing immediate cash flow while waiting to complete the processes related to long-term financing, such as the issuance of general obligation bonds or revenue bonds.

In contrast, General Obligation Bonds and Revenue Bonds are inherently long-term financing instruments, as they are intended for funding projects over a longer duration. Tax Anticipation Notes (TANs) do serve as a short-term financing option but are tied specifically to anticipated tax revenue, which is slightly different from the more general scope provided by BANs. Thus, while both BANs and TANs provide interim financing, BANs are specifically categorized within the realm of bond financing for projects awaiting longer-term funding.