QUESTIONS ON THE TEXT

1. Distinguish between money and credit.

2. Name and distinguish between the four types of banks.

3. What is the primary function of a commercial bank?

4. Explain clearly the nature of bank credit.

5. If the cash reserve of a bank is low, and the bank is confronted with demands for loans, in what two ways may it dispose of these demands?

6. What dangers attend the extension of bank credit?

7. Describe the national banking system.

8. Why should a banking system be elastic?

9. Explain the inelasticity of deposit credit before 1913.

10. Discuss the inelasticity of bank note issue under the old national banking system.

11. What was the significance of the panic of 1907?

12. Outline the framework of the Federal Reserve System.

13. Explain in detail how the Act of 1913 provides for elastic deposit credit.

14. Explain the "rediscounting device."

15. How does the Act of 1913 provide for an elastic bank note issue?

16. What is the present outlook with respect to our banking system?

REQUIRED READINGS

1. Williamson, _Readings in American Democracy_, chapter x.x.xi.

Or all of the following:

2. Ely, _Outlines of Economics_, chapter xv.

3. Fetter, _Modern Economic Problems_, chapter ix.

4. Seager, _Principles of Economics_, chapter xx.

5. Guitteau, _Government and Politics in the United States_, chapter x.x.x.

QUESTIONS ON THE REQUIRED READINGS

1. Outline the financial powers of Congress. (Guitteau, page 361.)

2. Describe the First and Second United States banks. (Guitteau, pages 369-370.)

3. What were the main functions of the national banks? (Guitteau, pages 371-373.)

4. What are collateral loans? (Seager, pages 346-347.)

5. What are the limitations upon the use of bank credit? (Seager, pages 352-353.)

6. In what ways are depositors in national banks protected? (Seager, pages 358-359.)

7. What is the Independent Treasury system? (Ely, pages 297-298.)

8. Explain the relation of "moving the crops" to bank credit. (Ely, pages 298-299.)

9. How does the Bank of England secure elastic reserves? (Ely, page 302.)

10. What was the Aldrich-Vreeland Act? (Ely, pages 305-306.)

11. Enumerate some of the powers of the Federal Reserve banks.

(Fetter, page 121.)

TOPICS FOR INVESTIGATION AND REPORT

I

1. Write to a number of banks in your vicinity asking for literature describing the varied services which they offer the public.

2. Outline some of the more important banking laws of your state.

3. What are the limits of the Federal Reserve district in which you live? In what city is the Reserve Bank located? Why do you suppose it is located in this city?

4. List the banks in your vicinity that are members of the Federal Reserve system.

5. Interview an official of a bank belonging to the Federal Reserve System upon the advantages of such membership.

6. Interview a friendly official of a bank which does not belong to the system. Try to ascertain the reasons why this bank does not belong to the Federal Reserve System.

II

7. Nature and function of money. (Ely, _Outlines of Economics_, chapter xiv; Fetter, _Modern Economic Problems_, chapter iii.)

8. Functions of a bank. (White, _Money and Banking_, part iii, chapter i; Fetter, _Modern Economic Problems_, chapter vii; Fiske, _The Modern Bank_, chapter iv.)

9. The bank statement. (White, _Money and Banking_, part iii, chapter ii.)