(The numbers refer to the numbered sections in the text.)

Part I. Banking Practice

Chapter I

1. What is meant by a financial institution?

2. Distinguish between an individual and a private banker.

3. What are the functions of a bank of discount ?

4. In what ways does a trust company differ from a national bank?

5. What is a savings bank?

6. For what purposes do building and loan associations exist?

7. Define a mortgage, loan and investment corporation.

8. What is a safe deposit company?

Chapter II

9. What amount of capital is required of a national bank? What forms must be sent to the Comptroller of the Currency in order to organize a national bank?

10. Give the main points covered by the articles of association of a national bank.

11. Describe the form of organization certificate.

12. What are the duties of bank directors?

13. What is the most important committee of the board of directors? What are its duties?

14. What is meant by a majority of the board of directors ? Has a director the power to bind the bank in a transaction?

15. Is it good or bad policy for directors to borrow of their own institution? Why?

16. What general actions should be provided for in the by-laws?

17. May a national bank transact business before its capital is paid in? What are the provisions of the National Bank Act in regard thereto? What are the provisions in the New York law?

18. What is the provision in the National Bank Act with regard to deposit of bonds?

19. To what extent may banks issue circulating notes?

20. How would you proceed to organize a state bank ?

Chapter III

21. Describe the organization of the staff of a country bank of discount.

22. How is the staff of a large city bank of discount organized.

23. What are the usual duties of managers of branches of large city banks or trust companies ? What general rules would you lay down in respect to the accounting of a large city bank having branches ?

24. What are the legitimate functions of a savings bank?

25. Show why a trust company is not likely to be organized in country districts.

26. Into what departments is a large city trust company divided? What kind of business is handled by each department?

Chapter IV

27. Describe an old style general ledger.

28. What is a three column ledger?

29. What is a Boston ledger and what are some of the advantages and disadvantages found in its use?

30. What accounts should appear on the general ledger of a national bank? Of a state bank?

31. Wherein will the accounts on the general ledger of a trust company differ from those of a state bank ?

32. Describe the form of a daily statement.

33. Where should accounts with banks be carried?

34. What is a controlling account and how is it used in bank accounting?

35. Suggest a substitute for the old fashioned journal.

36. What is the usual method of handling the expense account ? Suggest a method of handling petty expense items.

37. How do overdrafts usually appear on the daily statement?

38. What are the principal books required in a trust company?

39. How is a depositor in a savings bank identified by the teller?

40. Describe some of the processes of checking the postings in a savings bank.

41. Describe the method of daily balancing.

42. When are the ledgers proved in a savings bank?

43. What is the usual practice in crediting and paying interest?

44 and 45. Discuss loose leaf and card ledgers for savings banks.

46. What does the general ledger of a savings bank contain?

47. What detail is essential to a good mortgage record?