SIE practice questioneasyPurpose of SROs
What is the primary purpose of an SRO?
- ATo enforce federal tax laws
- BTo regulate its own members and promote fair practices✓ Correct answer
- CTo issue government bonds
- DTo determine interest rates
Explanation
Why B — To regulate its own members and promote fair practices
SROs regulate their own members and establish rules to promote ethical conduct in the securities industry.
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