Chapter XI

151. What is a coupon? Describe the method of receiving and collecting.

152. Describe method of paying coupons and records pertaining thereto.

153. Discuss care of stationery and supplies.

154. Discuss filing of incoming letters.

155. Discuss filing of outgoing letters.

156. How should paid checks be filed? What is the danger of allowing the bookkeeper to file them?

157. What disposition should be made of old records?

158. Describe a form for acknowledging remittances.

159. Discuss the treatment of employes.

Chapter XII

160. What are the duties of officers in a country bank ?

161. How are the duties of officers assigned in a city bank?

162. Discuss methods of handling investments.

163. Describe a system for caring for bond investments in a trust company.

164. What records are used in a safe deposit company?

165. What is the minute book?

Chapter XIII

166. Discuss periodic audits.

167. Explain a simple method of accruing interest receivable day by day.

168. How can clerks be trained for efficient work? 169 and 170. Discuss bank advertising and soliciting.

Part II. Foreign Exchange

Chapter I

171. What determines the fixed par of exchange between any two given countries?

172. Of what importance is the fixed par of exchange?

173. A cotton merchant in the United States has sold 100 bales of cotton to a spinner in Liverpool, Eng. Explain how the payment is effected.

174. What is the difference between "discountable" and "rebatable" commercial long bills?

175. In a general way, which is the safer, a commercial bill drawn against cotton, or a commercial bill drawn against meat? Why?

176. Why are "clean" bills a risky kind of exchange in which to deal?

177. Assume that bonds have been sold by a banker in New York to a banker in London. Explain how they will be paid for.

178. What are the three main classes of "bankers' long bills"?

179. Why do international loaning operations bring long bills of exchange into existence?

180. How do "finance bills" differ from bills originating as a result of foreign loaning operations?

181. What are the main limitations to the issuing of finance bills?

Chapter II

182. Explain the operation of a banker's selling demand exchange against a remittance of demand exchange.

183. Does the credit of the drawer of a commercial bill have much of an effect on the rate of exchange at which it can be sold?

184. Why must bankers who make a practice of selling "cables" keep good balances abroad?

185. What fixes the difference in the rate of exchange between "cables" and "demand"?

186-7. Explain the operation of a banker's selling demand bills against remittances of long bills. When long bills are remitted, when does the balance abroad become available?

188. Why are different bills of the same kind discounted abroad at varying rates?

189-90. Explain how foreign money is loaned in the American market.

191. How is it that foreign money can be loaned out here without any actual cash being sent over?

192. What is meant by the "risk of exchange" on foreign loans?

193. Show why profits made out of this kind of business are large.

194. What is meant by investing money in exchange?

195. Show the principal benefit of investing money in exchange.

196. In the above operation, long bills remitted abroad are not discounted. Why not ?

197. What is the reason for "arbitraging" in exchange?

198. Without giving exact figures, explain an arbitrage operation in foreign exchange.

199. Why is great skill required for operations of this kind?