SIE practice questioneasyMunicipal Bonds - Regulation
Who regulates the municipal securities market and establishes rules for municipal securities dealers?
- AFinancial Industry Regulatory Authority (FINRA)
- BFederal Deposit Insurance Corporation (FDIC)
- CSecurities Investor Protection Corporation (SIPC)
- DMunicipal Securities Rulemaking Board (MSRB)✓ Correct answer
Explanation
Why D — Municipal Securities Rulemaking Board (MSRB)
The MSRB writes rules regulating municipal securities firms and professionals. While FINRA enforces some MSRB rules, the MSRB is the rule maker. FDIC insures bank deposits and SIPC protects brokerage customers.
Turn it into reps
Reading one answer is not the same as being ready
Lucky the Banker is a free practice app with 1,867+ SIE questions, weak-area tracking, and timed mock exams. No credit card, no paywall.
Related Debt Securities questions
- Which best describes the federal tax status of interest earned on most municipal bonds?
- A tombstone advertisement for a new securities offering is permitted during the cooling-off period and typically…
- Which organization writes rules for firms and professionals involved in municipal securities activities?
- When interest rates rise, what generally happens to existing bond prices?