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

• A. Regulating securities
• B. Setting interest rates
• C. Investigating insider trading
• D. Overseeing corporate governance

Answer: (B)

The key idea is understanding what the SEC is responsible for versus who handles monetary policy. The SEC’s role is to regulate securities markets, enforce federal securities laws, and protect investors. This includes overseeing who can trade securities, supervising brokers and exchanges, requiring companies to disclose material information, and pursuing cases of insider trading to keep markets fair. It also involves corporate governance aspects like ensuring transparent and adequate disclosures from public companies and overseeing governance practices to protect investors.

Setting interest rates is not in the SEC’s domain; that’s monetary policy managed by the central bank. The central bank uses tools such as the policy rate to influence inflation and economic activity, not to regulate securities markets. So choosing the item about setting interest rates reflects a responsibility outside the SEC’s remit.