Chapter III

200. Why is commercial credit business growing in volume?

201. What is the primary purpose of a commercial credit?

202. How does the shipper of the merchandise get his money?

203. What part does the credit of the importer play?

204. Explain the general purpose of a "trust receipt."

205. What is the great advantage of a commercial credit to an importer to merchandise?

206. What is its advantage to the shipper of the goods?

207. In a commercial credit transaction the banker puts up no actual money, and yet the shipper of the merchandise receives his money at once. Where does it come from?

208. What are export credits?

209. What influence does the issue of commercial credits exert on the stability of the commercial structure?

Chapter IV

210. What are the main divisions of dealings in exchange originating from international security trading?

211. Explain how the replacing of maturing investments held abroad gives rise to foreign exchange transactions.

212. Show the usual method of financing international speculation in securities.

213. Define "arbitrage" as applied to securities.

214. Why is there ever any difference in the price of the same security in two different markets ?

215. What constitutes a fair profit in stock arbitrage? In bond arbitrage ?

216. Why do operations of this sort at times so strongly influence the exchange market?

217. Why is the exchange market so good an indicator of the trend of international security dealings?

Chapter V

218. Why is there a "primary" movement of gold?

219. What is the secondary distribution?

220. Why do small exports result in high exchange rates?

221. Point out the influence of low money rates on foreign exchange.

222. How do high money rates affect the exchange market?

223. Show how international buying and selling movements of securities affect the exchange market.

224. What is a "direct" movement of gold ?

225. An indirect movement?

226. Why is the business of shipping gold concentrated in the hands of a few bankers?