General Securities Representative (Series 7) Practice Exam

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Study for the General Securities Representative (Series 7) Exam. Boost your confidence with flashcards and multiple choice questions, each featuring explanations. Prepare effectively for your evaluation!

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What is the primary regulatory body overseeing broker-dealers and municipal securities professionals?

Securities Exchange Commission (SEC)
Financial Industry Regulatory Authority (FINRA)
Municipal Securities Rulemaking Board (MSRB)
Commodity Futures Trading Commission (CFTC)

The correct answer is: Municipal Securities Rulemaking Board (MSRB)

The primary regulatory body overseeing broker-dealers and municipal securities professionals is the Municipal Securities Rulemaking Board (MSRB). The MSRB was established specifically to regulate the municipal securities market and set rules for municipal securities dealers and advisors. Its responsibilities include ensuring that the market operates in a fair and efficient manner, establishing standards of conduct for professionals in the industry, and providing transparency and education about municipal securities. While the Securities and Exchange Commission (SEC) does oversee the broader securities industry, including the enforcement of securities laws, its focus is not exclusively on broker-dealers or the municipal securities market. The Financial Industry Regulatory Authority (FINRA) is another important regulator, primarily overseeing broker-dealers and enforcing compliance with industry regulations, but it does not focus solely on municipal securities. The Commodity Futures Trading Commission (CFTC) regulates the trading of commodity futures and options, which is outside the scope of municipal securities. In summary, the MSRB's specific mandate regarding municipal securities professionals makes it the correct choice for this question.