Revenue bonds are usually repaid by:

Revenue bonds are a type of municipal bond that are utilized primarily to finance specific projects, such as the construction of infrastructure like water treatment plants or toll roads. The key aspect of revenue bonds is that they are repaid using the income generated from the project that they funded, rather than through general taxation or broad-based governmental revenues.

The specific sources of revenue from which these bonds are repaid can include user fees, such as charges for water usage, tolls collected from a highway, or rental incomes from properties. This structure allows municipalities to pursue necessary projects without needing to rely solely on taxation, thus providing a means to fund essential services and infrastructure while minimizing the impact on taxpayers.

In contrast, options like state taxes, interest from foreign loans, or credit do not neatly align with how revenue bonds operate, as they do not derive repayment from the specific revenue streams connected to the projects funded by those bonds. This distinction is crucial to understanding the function and strategy behind revenue bond financing in public finance.