Final answer:
A municipal bond that is backed by the full faith and credit of the issuer is called a General Obligation bond. General Obligation bonds are issued by state and local governments and are secured by their ability to levy taxes and various revenue sources.
Step-by-step explanation:
A municipal bond that is backed by the full faith and credit of the issuer is called a General Obligation bond. General Obligation bonds are issued by state and local governments and are secured by their ability to levy taxes and various revenue sources. The full faith and credit of the issuer means that the government entity is obligated to repay the bondholders using its taxing authority if necessary.