Which of the following best explains the role of the CFTC?

Prepare for the Commodity Regulation License Exam. Study with flashcards and multiple choice questions, each question features hints and explanations. Boost your confidence for the exam!

The role of the Commodity Futures Trading Commission (CFTC) is primarily to enforce regulations aimed at protecting market participants in the commodity futures and options markets. This involves overseeing and regulating trading practices to ensure transparency, prevent fraud and manipulation, and maintain market integrity. By enforcing rules and regulations, the CFTC works to foster a competitive, efficient, and resilient trading environment, which ultimately helps to protect investors and consumers.

The other options do not accurately capture the main responsibilities of the CFTC. For example, while the organization plays a role in ensuring fair trading practices, it does not directly conduct all trading in commodity futures. Instead, trading activities are carried out by various market participants. Furthermore, the CFTC is not responsible for providing funds for agricultural subsidies, as this is typically managed by other government entities like the Department of Agriculture. Lastly, while the commission may influence fair trade practices through its regulations, its core mission pertains specifically to the regulation of futures markets rather than all goods in commerce.

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