Which of the following is a purpose of state bonds?

State bonds serve several important purposes, primarily focused on financing projects that benefit the public. Among these, financing public infrastructure is a key purpose. State bonds are typically issued to raise funds specifically for large-scale infrastructure projects such as roads, bridges, schools, and hospitals. By issuing bonds, a state can generate the necessary capital to undertake these projects upfront, which often require significant financial resources that are not readily available in the state’s budget.

The use of bonds allows states to spread the cost of infrastructure projects over a longer period, making it more manageable for taxpayers. As the projects are completed and start to provide benefits to the community, the state can utilize the revenue generated or savings created to pay back the bonds over time. This strategic use of bonds enables states to improve public services and enhance the quality of life for their residents through necessary and critical infrastructure development.