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Multiple Choice
Which institution assists individuals in buying and selling securities among investors?
A
Stock Exchange
B
Federal Reserve
C
Commercial Bank
D
Internal Revenue Service (IRS)
Verified step by step guidance
1
Understand the role of each institution listed in the options: Stock Exchange, Federal Reserve, Commercial Bank, and Internal Revenue Service (IRS).
Recognize that the Stock Exchange is a marketplace where securities such as stocks and bonds are bought and sold among investors.
Note that the Federal Reserve primarily manages monetary policy and regulates banks, not securities trading.
Understand that Commercial Banks provide financial services like loans and deposits but do not facilitate securities trading directly.
Clarify that the Internal Revenue Service (IRS) is responsible for tax collection and enforcement, not securities trading. Therefore, the Stock Exchange is the correct institution for buying and selling securities among investors.