The following questions are intended to assist the student in testing the extent of his knowledge of the subjects treated in the preceding chapters. They are taken, by kind permission, from papers set by the undermentioned examining bodies. The initials at the end of each question denote the source from which the question is quoted:

I.B. = Institute of Bankers.

I.B.S. = Institute of Bankers in Scotland.

I.B.I. = Institute of Bankers in Ireland.

L.C.C. = London Chamber of Commerce.

Chapters I And II

1. What do you understand by a measure of value? Describe its attributes; illustrate by considering the respective fitness of wheat, labour and gold to act as such measure. [I.B.

2. What are the grounds upon which it has been held that a rise in the value of money is an evil? Examine them; explaining how you would measure such a rise. [I.B.

3. On what grounds is stability in the value of money held to be desirable? What is the precise meaning and proper test of such stability? [I.B.

4. Distinguish clearly between Value and Price, and show that the distinction is sometimes important. Consider especially the case of gold. [I.B.S.

5. Why is it said to be "evident that, though there cannot be a general rise or fall in values, there can be a general rise or fall in prices"? [I.B.I.

Chapter III

1. Explain Gresham's Law, and give examples of its application. What are the conditions essential to its operation? [I.B.S.

2. Explain Gresham's Law about coins. Does it apply to paper money? [I.B.I.

3. Explain and illustrate Gresham's Law. State its cause and the modes of its operation. [I.B.

Chapter IV

1. What is the meaning of legal tender - limited and unlimited? [I.B.

2. If a person had gold to sell, which course would you recommend, to sell it to the Bank of England or to send it to the Mint to be coined? Give your reasons. [I.B.I.

3. Distinguish between the simple, multiple, and composite legal tender systems. [L.C.C.

Chapter V

1. What was the relation of gold to silver as legal tender in England from 1717 till the adoption of the gold standard in 1816? [L.C.C.

2. What were the causes that led to the adoption of the gold standard in England? [L.C.C.

3. "It is a very general belief that the limitation of the legal tender of silver to 40s. is the cause of our half-crowns circulating at their token value in gold."

Explain the terms token and legal tender. Do you consider this general belief well founded? [I.B.

Chapters VI And VII

1. Indicate briefly the advantages and disadvantages of gold as the standard of value. How would a return to bimetallism on the part of the United Kingdom be likely to affect the prices of commodities therein? [L.C.C.

2. How did the gold discoveries of 1848 to 1850 act on the standard of value in France? [L.C.C.

3. How is the value of gold determined? Mention the principal alterations in its value since 1848, with their causes.

4. Explain the leading causes of the great fall in the gold price of silver since 1873. [I.B.S.

5. When and by what countries was the Latin Union first founded? State briefly the arguments used for and against bimetallism. [L.C.C.

6. Sketch briefly the causes that led to the demonetisation of silver by Germany in 1871, and by the United States in 1873. [L.C.C.

Chapters VIII And IX

1. Criticise the following: - If credit is the principal cir culating medium, and so far as prices depend upon the circulating medium, it is to credit and not to gold that we must look as the immediate regulator of prices. [L.C.C.

'2. What is inconvertible paper money? In what circumstances is it employed? How far does it satisfy the requirements of good money, and what are its defects? [LB.

3. How could you (a) measure, (b) regulate, the value of an inconvertible currency? What are the objections to a currency of this kind? [LB.

4. What is Credit? Show how an expansion of Credit may affect General Prices, and indicate the real limits to Credit inflation. [I.B.S.

5. During what years did the Bank Restriction Act of 1797 remain in force - what was its effect on the currency? [L.C.C.

Chapter X

1. Briefly state and criticise the regulation of the note issue of (a) the Bank of England; (b) the English provincial banks. [L.C.C.

2. Describe the circumstances that led to the passing of the Bank Act of 1844, and state its principal objects. [I.B.

3. According to Lord Overstone, "the one simple duty which the manager of the currency has to perform is that of making the amount of paper circulation vary precisely as the amount of the circulation would have varied had it been exclusively metallic."

Examine this doctrine as applied to the cases (a) of a national, (b) of a local note issue. [I.B.

4. What was the main purpose of the Bank Act of 1844, and how far was it successful? Illustrate by reference to crises of 1847, 1857, and 1866. [I.B.I.

5. Show the importance in the Credit System of the United Kingdom of an adequate Banking Reserve in the Bank of England. [I.B.S.

Chapter XI

1. Explain the principal provisions of the Bank Act, of 7 Geo. 4, c. 46 (1826). [L.C.C.

2. Does any and what liability attach to banks of issue registered as limited companies with respect to their notes? [L.C.C.

3. When and how was the Bank of England deprived of the monopoly of Joint Stock Banking in London? [L.C.C.

4. Enumerate the different classes of banks in England and Wales, stating briefly the differences in their constitution. [I.B.

5. A bank is registered under the Act of 1870 with a subscribed capital of £1,000,000, divided into shares of £40 each. on which £10 have been paid up: what is the nature of the "reserve liability" formed of the remaining £30 per share? [I.B.I.

6. There is a movement towards the absorption of the private banks in England by the larger joint-stock establishments. What is likely to be the ultimate effect of this amalgamation movement (a) as regards English banking, and (b) as regards the general public? [I.B.S.