Which, if any, of the following statements is (are) correct?

1.Financial risk has to do with the amount of leveraging or the use of borrowed funds that a firm utilizes to structure its investments and finance its assets.

2.General obligation bonds are backed by the income from a specific project.

Select one:

a. 1 only.

b. 2 only.

c. Both 1 and 2.

d. Neither 1 nor 2.