Introductory Business Law CLEP Prep Practice Exam

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Prepare for the CLEP Business Law Exam with flashcards and multiple-choice questions. Each question comes with hints and explanations to help you succeed. Master the content and pass your exam!

Each practice test/flash card set has 50 randomly selected questions from a bank of over 500. You'll get a new set of questions each time!

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What act enacted by the United States regulates securities?

Sarbanes-Oxley
Federal Sentencing Guidelines
Equal Employment Opportunity Act
Securities Exchange Act

The correct answer is: Securities Exchange Act

The Sarbanes-Oxley Act (choice A) was enacted to address corporate and accounting fraud. While it does have some provisions related to securities, it is not the primary act that regulates securities. The Federal Sentencing Guidelines (choice B) are a set of guidelines used in criminal cases, and do not pertain to regulating securities. The Equal Employment Opportunity Act (choice C) prohibits discrimination in the workplace and has no relation to regulating securities. The correct answer is D, the Securities Exchange Act, which was enacted to regulate the buying and selling of securities, including stocks and bonds, and to protect investors from fraudulent or manipulative practices. This act created the Securities and Exchange Commission (SEC), the main regulatory body for securities in the United States.