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Exam Questions Johns Hopkins

Johns Hopkins. Mid-year and end-year exams for undergraduate money and banking. Weyforth, 1930-31

 

William Oswald Weyforth, Jr.  (b. September 1, 1889; d. March 10, 1983) was the author of The Federal Reserve Board. A Study of Federal Reserve Structure and Credit Control. Baltimore: Johns Hopkins Press, 1933. The book was reviewed by F.A. Bradford in the March, 1934 AER and by C. S. Tippetts in the June, 1934 JPE.

Research for an earlier monograph (The Organizability of Labor [1917] was begun while Weyforth was a member of the Economic Seminary at Johns Hopkins. 

Weyforth’s A.B. (1912) and Ph.D. (1915) were both from Johns Hopkins University. Before returning to the Johns Hopkins department of political economy he was an instructor at Western Reserve University, 1915-17.

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Course Announcement and Description
3B. Money and Banking. Associate Professor Weyforth.

Three hours weekly through the year.(Mon., Tues., 9.30; Fri., 10.30.) Gilman Hall 313.

In the first part of this course the principles of money, credit and banking will be considered, with special reference to the operation of the American banking system. A study will be made of the functions of the modern commercial bank and of the relationship between the commercial bank and the business man. A large part of the course will be devoted to a consideration of the factors leading to the passage of the Federal Reserve Act, the changes in our banking system under that Act and problems in the management of the Federal Reserve System.

In the second part of the course the principles of international trade and exchange will be studies. Particular attention will be given to foreign exchange, foreign credits, foreign investments and in general to the problems of international finance.

Prerequisite: Political Economy 1C.

Source: Johns Hopkins University. The College of Arts and Sciences of the Johns Hopkins University, 1930-31, p. 33.

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THE JOHNS HOPKINS UNIVERSITY
Mid-Year Examination
POLITICAL ECONOMY 3
January 29, 1931

  1. What is meant by the monetary standard? Explain the following types of standards: gold standard, bimetallic standard, paper standard. What are the reasons for adhering to a gold standard?
  2. Explain carefully the quantity theory of money, showing the various limitations upon the theory. Does the fact that at times increases in prices may precede changes in the quantity of money nullify the theory. Explain.
  3. Describe briefly the various types of financial institutions that may function in meeting the financial requirements of corporations and explain the fundamental nature of the operations of each type.
  4. Describe an underwriting operation by a syndicate in the flotation of an issue of corporation bonds.
  5. Enumerate and describe the more important types of investment credit instruments. What are the fundamental commercial credit instruments? Explain their nature and use. What is the nature and importance of negotiability?
  6. What is the essential nature of a “demand deposit”? How do such deposits come into existence? How does the receipt of a cash deposit of $100,000 affect the lending power of an individual bank? How does it affect the lending power of the system as a whole? Explain fully.
  7. Why is it necessary for a commercial bank to maintain a cash reserve? What determines its amount? What is the importance of capital and surplus to a bank? How does a commercial bank invest its fund? What is the importance of liquidity in its investments? How is liquidity secured?

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THE JOHNS HOPKINS UNIVERSITY
Final Examination
POLITICAL ECONOMY 3
Wednesday, May 27, 1931 — 9 a.m.

  1. Give a brief survey of banking conditions in the United States leading to the organization of the National Banking System. Explain the defects that developed in that system and the history of the reform movement that eventually led to the establishment of the Federal Reserve System.
  2. In what way can the banking system of a country contribute to stability or instability of business conditions?
  3. Explain the manner in which the Federal Reserve System can affect the general level of prices. Discuss the limitations upon the powers of the Federal Reserve System in this respect.
  4. What is the nature of the business of commercial paper houses? Explain the financial services that they perform. How are installment sales financed? Describe the operations of the institutions that perform this type of financing.
  5. Describe the organization and operations (a) of the Federal Farm Loan System, (b) of the Federal Intermediate Credit Banks.
  6. Explain the manner in which international payments are effected by means of foreign exchange operations. Show how, through these operations, exports pay for imports. What is the basis of the contention that the United States ought to reduce its tariff rates if it expects the allied nations to pay their debts to us?
  7. What is meant by “department store” banking? What factors have been responsible for the consolidation of banks in recent years? What are the arguments for and against branch banking?

Source: Johns Hopkins University.Sheridan Libraries, Ferdinand Hamburger, Jr. Archives. Department of Political Economy Curricular Materials, Series 6, Box 2, Folder “Exams 1930-1935”.

Image Source: William Oswald Weyforth (ca. 36 years of age). Johns Hopkins University graphic and pictorial collection, Sheridan Libraries.