Question

which statement explains a way how the securities and exchange commission upholds fair business practices?
the sec makes sure that banks follow federal laws.
the sec tries to limit risk in the financial system.
the sec generally oversees banking practices.
the sec generally oversees financial advisers.

Explanation:

• Option A: Ensuring banks follow federal laws is more the role of regulatory bodies like the Federal Reserve or OCC, not the SEC.
• Option B: Limiting risk in the financial system is a broader goal of multiple financial regulators, and not the primary way the SEC upholds fair business practices. The SEC's focus is more on disclosure, fraud prevention, and oversight of securities - related activities.
• Option C: Overseeing banking practices is not the main function of the SEC. Banking is overseen by banking - specific regulators.
• Option D: The SEC oversees financial advisers to ensure they act in the best interests of their clients, provide accurate information, and follow securities laws, which is a key way to uphold fair business practices in the financial advisory and securities - related business.

Answer:

D. The SEC generally oversees financial advisers