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27.Which of the following is a function of a stock exchange as a self-regulatory organization (SRO)?  A. Conducting monetary policy  B. Regulating international trade  C. Enforcing trading rules and regulations  D. Issuing government bonds

Question

27.Which of the following is a function of a stock exchange as a self-regulatory organization (SRO)?  A. Conducting monetary policy  B. Regulating international trade  C. Enforcing trading rules and regulations  D. Issuing government bonds

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Solution

The function of a stock exchange as a self-regulatory organization (SRO) is C. Enforcing trading rules and regulations.

Here's why:

A. Conducting monetary policy - This is typically the role of a central bank or a similar monetary authority, not a stock exchange.

B. Regulating international trade - This is usually the role of international organizations or government bodies, not a stock exchange.

C. Enforcing trading rules and regulations - This is indeed a function of a stock exchange as a self-regulatory organization. They ensure that all participants follow the established rules and regulations to maintain a fair and orderly market.

D. Issuing government bonds - This is typically the role of a government or a government agency, not a stock exchange.

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