300. Do bonds constitute a reliable reserve?

301. How did the Aldrich-Vreeland Act make bonds a valuable asset in a panic? (Also see Appendix I.)

CHAPTER XVII

302. How does a bank statement differ from a mercantile form?

303. How does the statement of the national banks prove the validity of the deposit currency theory? How much deposit currency is there in the United States?

304. Why do the resources and liabilities exactly balance?

305. What do the items on the liability side signify? How do changes in the values of resources affect the statement?

306. What are "concealed assets"? Are they good policy?

307. Distinguish between discounting and loaning. 308. What is an over-draft?

309. Where do the securities held as collateral on loans appear?

310. How are the deposits of the United States Government secured?

311. Why do banks sometimes carry government bonds in their own vaults?

312. What is meant by the premium on United States bonds?

313. What is included under bonds, securities, etc., and why has this item increased greatly in recent years? 314. Are banks usually the owners of the large buildings in which their offices are situated?

315. What is the law regarding the holding of real estate by a bank?

316. What is meant by the item "due from national banks"?

317. What is an "approved reserve agent"?

318. What are cash items?

319. Why do national banks seek to have on hand as few bank notes as possible?

320. What are legal tender notes?

321. What is the Redemption Fund?

322. What is included under "due from the United States Treasury"?

CHAPTER XVIII

323. Why is the mimimum capital of a bank proportioned to the size of the city in which it is located? Theoretically how large should the capital of a bank be?

324. What is the double liability feature of bank stocks? Why is the above distinction made between bank and other stocks? How is it possible for the capital of a bank to be really fictitious?

325. What is the purpose of the surplus? What is the requirement of the National Bank Act regarding surplus? Why do some banks start with a surplus? What is meant by the "book-value" of bank stocks?

326. What disposition is ultimately made of the item "undivided profits"?

327. What inducement is there for the banks to take out circulation?

328. Explain the item "State Bank Notes Outstanding."

329. Explain the item "individual deposits." What is a certificate of deposit?

330. Under what conditions does the government deposit in national banks?

331. Explain the item "bonds borrowed."

332. What is the difference between American and European banking in the matter of rediscounting? 333. What are the "bills payable" of a bank? 334. What is the effect of certifying a check? 335. What is a "cashier's check"?

CHAPTER XIX

336. What five institutions are called "banks"? 337. What is the difference between national and state banks?

338. What is the principal business of large private banks?

339. Describe "underwriting."

340. What is the difference between the trust company and a bank? How did the trust company get its name?

341. Are trust companies required to keep reserves? 342. What is the nature of the deposits in trust companies?

343. What departments are required in a trust company?

344. What are the functions of a trust company as individual trustee?

345. Describe the corporate trusts of a trust company. 346. Why is a savings bank really not a bank at all? 347. Describe the organization of a bank.

348. Describe the evolution of a bank in a small town. 349. Where is ultimate authority located in an incorporated bank?

350. What are the requirements for directors named in the National Bank Act? What is the penalty on directors if they allow the law to be violated?

351. What considerations govern the choice of directors?

352. According to the courts, what is the responsibility of bank directors? How may the directors ascertain the true condition of the bank?

353. Of what value is the plea of ignorance?

354. Can directors rely implicitly on the reports of national examiners? What two types of loans should directors be familiar with?

355. What should be the attitude of bank directors toward loans to officers and other directors?

356. What are the duties of the president?

357. Who is the chief executive officer of a bank? What is the importance of the credit department of a bank?

358. What are the duties of the paying teller? Discount clerk?

359. What are the duties of the receiving teller? From what four sources do funds come into a bank? 360. What are the duties of the note teller? 361. Describe the work of the discount clerk and show why he is busy during a period of active speculation. 362. Mention the important books kept by a bank. 363. What is the law with regard to collections? What risk is connected with a tramp collection?

364. What is the responsibility of a collecting bank? 365. What is the expense of collecting out-of-town checks? What schemes have been proposed for lessening the expense of collecting country checks?

366. What is the English method of collecting country checks?

CHAPTER XX

367. Distinguish between general and special deposits.

368. How did the Legal Tender Acts work a hardship to the depositors during the War? How far is a bank responsible for special deposits?

369. What advantages do the safety deposit vaults bring to a bank?

370. What are the inducements offered to depositors by the banks?

371. Describe the difficulties in the way of establishing a new bank.

372. Why are depositors loyal to old and conservative banks?

373. When do depositors practice the "kiteing" of checks?

374. Illustrate the method of "kiteing."

375. Show how the title to deposit checks often becomes an important question.

376. Give an illustration of a case of disputed ownership.

377. What is the law regarding the acceptance of deposits by insolvent banks?

378. What risk does a holder run by retaining a check too long?

379. What is meant by "reasonable time" in the case of a local bank?

380. What recourse has the holder if a bank refuses to pay a check?

381. Can a depositor stop payment on a check? What effect has the death of a depositor upon checks not yet paid?