1. State the principal functions of a commercial bank.

2. Briefly outline the principal advantages of making payments by the ordinary bank check.

3. A business man is about to pay a bill of $49.75. He finds that there is over $200 in currency in his safe. He has a good-sized bank account. Which would be the more business-like way of paying his bill, by check or in currency? Why? 4. Name the principal sources of a bank's profits.

5. From what do the available funds of a bank for lending purposes accrue? 6. State the principal sources of a bank's expenses.

7. Name the three general classes of banking institutions.

8. Name the chief distinguishing features of a national bank.

9. Why are the underlying principles of the national banking system practically uniform? 10. State the individual liability of the stockholders of a national bank. Illustrate.

11. What lawful money must the national banks in your city have at all times on hand? 12. Define the following: (a) surplus fund; (b) United States bonds; (V) incorporated institution; (d) National Banking Act.

13. How many persons are required to form a national bank? 14. Could the number be made up wholly or in part of fictitious persons, as corporations, etc.? 15. What is the minimum capital under which a bank may organize in your city? 16. State the law with reference to the minimum capital required to organize a national bank.

17. A national bank is being organized in your city. There are already a number of national banks doing business there. Could the new bank adopt the name First National Bank? There is no other bank of that name in your city. Give reasons for your answer.

18. What per cent of the capital stock of a national bank must be paid in before the bank can be authorized to commence business? 19. State the necessary qualifications for a bank director.

20. What is generally the par value of a share of national bank stock?1 21. Suppose a national bank is formed with a fully paid in capital of $300,000. Another national bank is formed at the same time with a capital stock of $200,000, and a surplus fund of $100,000, both amounts fully paid in. Which bank in your judgment is the stronger institution? Why? 22. What proportion of the capital stock of a national bank must be invested in United States bonds? 23. Why is there no tax levied on United States bonds? 24. Define the following: (a) circulating notes; (b) redemption fund with the United States Treasurer.

25. Is a bank bound to take out circulating notes? 26. Do almost all national banks carry circulating notes? Why? 27. What per cent of the bonds deposited may the circulating notes be? 28. What is the market value of United States 2% gold bonds at the present time? 29. Are circulating notes a source of profit to national banks? 30. What is the yearly tax on national bank notes? 31. Are the United States bonds deposited with the United States Treasurer a source of income to the bank depositing them? Explain.

32. For what is Redemption Fund with the United States Treasurer created? How is the amount of it determined? 33. A fire occurs in A's warehouse. In the office of this warehouse $500 in national bank bills are burned to ashes. Has anybody gained by this destruction of bank notes? Explain.

34. State the principal corporate powers of national banks.

35. Under what conditions may a national bank hold real estate? 36. How can a national bank increase or diminish its capital? 37. Why are national banks prohibited from using their own circulating notes to pay for their capital stock? 38. By whom are the officers of a national bank chosen? 39. Name the usual officers of a national bank.

40. Name the usual clerks employed in the average national bank.

41. Why should the president of a bank be a man of extended experience and superior ability ? 42. State the principal duties of the average bank president.

43. Where there is a vice president in a bank what are his duties? 44. State the most important duties of the cashier of a national bank.

45. When there is an assistant cashier what are his duties? 46. Give the initial opening entry for a national bank.

47. Give the entry for the payment of the capital stock.

48. Give the entry for the purchase of United States bonds at a premium.

49. Give the entry for taking out circulating notes.

50. Give the entry for the funds remitted to the Treasurer of the United States to redeem worn and mutilated circulating notes.

1 The National Banking Act now requires the shares of stock to have a par value of $100, in harmony with the usual practice of joint-stock companies throughout the country. Some of the state banks, however, were originally organized with shares having a par value of §50. Where these banks were later changed into national banking associations they were given the privilege of forming with shares of a par value of $50. This may account for the fact that some national banks have shares whose par value is less than $100.