Answer:
True
Explanation:
Sinking funds are basically small savings kept aside each year for the upcoming payment of long term debt, to met or it can be used for payment of bonds issued, which will be matured this year.
In many cases sinking funds are maintained through either purchase of bonds through open market or through a lottery system.
Either cases there are no legal purpose or system defined for sinking funds.
Therefore, the correct answer is:
True