Part 57 (1/2)

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