11
practice testMultiple Choice

Practice Test

Question 11 • Economics

Which statement explains a way how the Securities and Exchange Commission upholds fair business practices?

Answer
A
The SEC tries to limit risk in the financial system.
B
The SEC generally oversees banking practices.
C
The SEC makes sure that banks follow federal laws.
D
The SEC generally oversees financial advisers.

Explanation

The Securities and Exchange Commission regulates securities markets and oversees many financial advisers to help protect investors and promote fair practices. Banking oversight is mainly handled by other federal agencies, and limiting risk across the entire financial system is not the SEC’s general role. Therefore, “The SEC generally oversees financial advisers” is correct.

AI-written and checked against the verified answer.

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