How do State and national banks differ as to their organisation?

9. A national bank has a capital of half a million. A customer asks
for a loan of $62,000 on indorsed paper. Can the bank legally grant
the loan?

10. Give some particulars of the liabilities of the officers and
directors of national banks.

11. What is meant by borrowing money on _collaterals_? How is this
done?

12. Tell how it is possible for a young man of good character, but
without friends who have financial standing, to secure bonds for his
faithful conduct in a responsible position.

13. When rates are high bankers prefer to deal in long-time paper.
Why?

14. Account for the fact that London is the financial centre of the
world.

15. Explain in detail the business of a note broker, giving some
particulars of his responsibility in connection with the paper
handled.

16. Enumerate the leading items of resource and liability in a
national-bank statement.

17. A bank receives from the comptroller of the treasury $100,000 in
new bank-notes of its own issue. What ledger entry? A bank retires
$10,000 of its own bank-notes. What entry?

18. Discuss fully the points which should enter into a proper estimate
of the value of paper offered for discount.

19. Give the successive and necessary steps in the formation of a
joint stock company.

20. Why are companies which properly exist and belong in one State
sometimes organised under the laws of another State?

21. Explain very fully the difference as to resource and liability
between a bondholder and a stockholder.

22. How may a stock company be dissolved?

23. What is the difference between a voluntary association, such as a
society or club, and a stock company?

24. Explain very fully the meaning of _Limited_ when it forms part of
the legal title of a company.

25. Is it legal to sell shares of stock and issue mortgage bonds upon
the same property? What relationship do they bear one to the other?

EXAMINATION PAPER

NOTE.--_The following questions are given as a means by which
the student may test for himself whether he has attentively
pursued the lessons of the course or not. It is recommended that
each student as he finishes the course write out the answers to
the questions in full. Only such answers need be attempted as
the student can frame from a careful study of the cou