Which of the following describes a characteristic of revenue bonds?

The characteristic of revenue bonds is that the funds raised through these bonds are specifically allocated for particular projects that are expected to generate revenue. This could include infrastructure projects like toll roads, bridges, or public utilities, where the income generated from users will be used to pay back the bondholders.

This is distinct from general obligation bonds, which are backed by the taxing power of the issuing authority and rely on the overall revenue from taxes rather than a specific project. Therefore, the repayment of revenue bonds is directly linked to the success and revenue generation of the projects they finance, making this characteristic a defining feature.