The Judicial Branch of the SEC

question 61

Multiple Choice

The judicial branch of the SEC:

• A)promulgates rules and regulations.
• B)decides whether a person has violated the securities laws.
• C)makes new laws regulating securities.
• D)brings enforcement actions against alleged violators.

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Definitions:

Commercial Paper

A short-term unsecured debt instrument issued by corporations, typically for financing accounts receivable and inventories.

Simple Interest

Interest earned or paid on the original principal amount alone, without compounding.

Buyer

A person or entity that purchases goods or services.

T-bill

Treasury bill, a short-term government security with a maturity of less than one year, used to finance the national debt.