Certified Anti-Money Laundering Specialist Certification (CAMS) Practice Exam

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Prepare for the Certified Anti-Money Laundering Specialist Certification (CAMS) exam. Study with multiple choice questions, each with hints and explanations. Boost your chances of success!

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What is the primary aim of the Securities and Exchange Commission (SEC)?

To enforce tax laws
To ensure market integrity and protect investors
To manage monetary policy
To regulate international trade

The correct answer is: To ensure market integrity and protect investors

The primary aim of the Securities and Exchange Commission (SEC) is to ensure market integrity and protect investors. This focus is essential as the SEC oversees securities markets and aims to promote fair trading practices. By regulating the securities industry, the SEC works to prevent fraud and deceit in the stock and options markets, thereby fostering confidence among investors. This is crucial for the efficient functioning of the financial markets, as it encourages investment and liquidity. In contrast, the enforcement of tax laws pertains to the responsibilities of the Internal Revenue Service (IRS), rather than the SEC. Managing monetary policy falls under the purview of the Federal Reserve, which oversees the nation’s money supply and interest rates. Regulating international trade is the responsibility of various trade and commerce agencies, not the SEC, which focuses specifically on the securities industry within the domestic financial markets. Thus, the SEC's primary aim distinctly revolves around investor protection and market integrity, clarifying its role in the financial ecosystem.