Under the SEC Act of 1934, which of the following is NOT a duty of the SEC?

The correct choice identifies an action that is not a designated duty of the SEC under the Securities Exchange Act of 1934. While the SEC has a broad range of responsibilities aimed at protecting investors and maintaining fair and efficient markets, the specific regulation of credit extension by broker-dealers falls under the jurisdiction of the Federal Reserve and not the SEC.

The SEC primarily focuses on regulating the activities within the securities markets, including overseeing the operations of national securities exchanges, establishing rules regarding the handling and safeguarding of client-owned securities, and ensuring proper practices for the solicitation of proxies. Each of these responsibilities aligns with the SEC's mission to promote market integrity and protect investors.

In contrast, the regulation of credit extension practices by broker-dealers relates more directly to monetary policy and banking regulations, which is why this duty is not attributed to the SEC in the context of the 1934 Act. Understanding these distinctions helps clarify the roles and functions of different regulatory bodies in the financial industry.