General Education Development (GED) Practice Exam

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Prepare for your GED Exam with our comprehensive quiz. Study with flashcards and multiple choice questions, each providing hints and explanations. Set yourself on the path to success!

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Which of the following is not a responsibility of the Securities and Exchange Commission (SEC)?

Regulating securities
Investigating insider trading
Setting interest rates
Processing applications for initial public offerings (IPOs)

The correct answer is: Setting interest rates

The responsibility of the Securities and Exchange Commission (SEC) includes regulating securities, investigating insider trading, and processing applications for initial public offerings (IPOs). These activities are integral to maintaining fair and efficient markets, protecting investors, and ensuring compliance with securities laws. Setting interest rates, on the other hand, falls under the purview of the Federal Reserve, which is responsible for implementing monetary policy in the United States. The SEC does not have any authority to set or influence interest rates. This delineation of responsibilities ensures that the SEC can focus on the regulation of securities while the Federal Reserve manages monetary policy and interest rates, which are crucial for the overall economy.