9. Two men A and B have notes each for $1000 discounted at the same bank. A is credited on the bank's books with the right to draw $950. B receives $950 in the circulating notes issued by this bank. Are the bank's liabilities increased to precisely the same extent by the two transactions? Does either [transaction] immediately lessen the bank's cash reserve?
10. The following are the items of a report of a National Bank: Capital stock, $50,000; Cash on hand and in banks, $77,066.21; Circulation, $49,400; Bills payable, $10,000; United States and other bonds, $239,050; Deposits, $465,417.41; Surplus and net undivided profits, $30,952.58; Loans and investments, $289,653.78.
(a) Separate and arrange these items in accordance with a regular bank statement and prove your answer.
(b) Show how these items illustrate the essential functions of a bank, explaining in detail the nature of these functions.
11. Sort out from the following items the resources and liabilities and show the equality of total resources and total liabilities:
| Unpaid dividends | $ 782.00 |
| Reserved for payment of taxes due | 10,000.00 |
| Undivided profits | 85,228.57 |
| Capital stock | 500,000.00 |
| Surplus fund | 250,000.00 |
| Cash items (checks to be presented for settlement in next day's exchanges) | 280,347.43 |
| Loans and discounts | 2,782,713.15 |
| U. S. legal tender notes and notes of national banks | 435,296.00 |
| Specie | 278,304.48 |
| Deposits | 4,057,934.61 |
| Overdrafts (checks paid in excess of deposits) | 2,842.10 |
| Due from banks and bankers | 370,142.02 |
| Real estate | 43,900.00 |
| Mortgage owned | 1,000.00 |
| Bonds | 709,400.00 |
12. Classify the following items as resources or liabilities of a national bank and give reasons for your classification of the 1st, 4th, 6th, and 7th: (1) Capital stock, $50,000; (2) Real estate, furniture, fixtures, etc., $15,046.14; (3) Cash, $69,343.34; (4) Surplus and net undivided profits, $19,257.43; (5) United States bonds, $108,951.50; (6) Loans and discounts, $242,546.36; (7) Deposits, $301,679.91; (8) Circulation (i.e., notes outstanding), $64,950.
Prove that your classification is correct by balancing the account. Then show the changes made in the account by the following transaction: The bank loans $25,000.00 for 90 days at 6 per cent. interest, and the borrower draws out one-half the amount, with which he is credited after the bank has made the proper deduction for interest.
13. The week's averages of the New York banks for the third week in May compare as follows in 1905 and 1904: