Let's do the real TOEFL reading questions(100-32)

[An Min]

In 1775 there were no commercial banks in the American colonies. The commercial Bank of England was already almost a century old, but few colonists had any dealings with it or with the Mother Country's enormous funded debt. However, there were some colonial institutions, both public and private, which went by the name of "bank", but most of these were very different from commercial banks. In the decades following the first attempts in Philadelphia, New York, and Boston to establish the Bank of North America in 1781, the Bank of New York in 1784, commercial banking endured political attacks, economic depressions, and angry mobs. In the early days of the American Republic, there developed two very distinct types of banks: commercial and savings. Saving banks only maintained lodged time deposits for individual use. Loans or credits to purchase unimproved land came from the land owner, which could be an individual, a large company such as the Holland Land Company, or the government. Sometimes wealthy personal friends supplied money.

Country bank, which were commercial banks, but which broke many of the rules of strict commercial banking, also loaned money for real estate. Insurance and Trust companies did too. Individuals and country and city banks made personal loans packed only by promissory notes, though the latter usually tried to hide the fact. Unscrupulous brokers and 'monied' individuals, broke the states usury laws to supply short-term unsecured credit at high interest. Merchants, brokers, and commercial banks conducted currency exchanges.

Commercial banks accepted special and demand deposits. They also created deposits by loaning �gmoney of account�h that could be drawn on by check or draft. Finally, commercial banks, and sometimes other corporations, both public and private, used loans to issue their own promissory notes payable to the bearer on demand. By presenting the note at the bank of issue, the bearer received the note�fs face value in gold or silver. Merchants considered bank notes the equivalent of specie (money in coins). A bank that could not convert its notes into gold or silver was considered insolvent and could lose its charter.

11. Which of the following statements best expresses the main idea of the passage?
(a) commercial banking in early America was slow to develop
(b) banking in early America was often unlawful
(c) America developed its own banking institutions in response to local developments rather than duplicating those of England.
(d) Commercial banking in Early America was not really commercial banking

12. The word �genormous�h in line 3 is closest in meaning to
(a) serious
(b) huge
(c) established
(d) hidden

13. Which of the following would be LEAST likely in a Colonial financial institution in America before the 1780s?
(a) that it would be similar to a commercial bank
(b) that it would be called a bank
(c) that it would be private
(d) that it would lend money

14. The word �gendured�h in line 7 is closest in meaning to
(a) suffered
(b) avoid
(c) feared
(d) survived

15. The word �gwhich�h in line 10 refers to
(a) loans or credits
(b) unimproved land
(c) land owner
(d) an individual, a large company, or the government

16. Which of following is the most likely inference about the behavior of country and city banks in making personal loans?
(a) they preferred not to lend if they did not have enough money to cover the amount
(b) they usually preferred to leave this function to individuals
(c) they usually wanted to avoid risking a loss of customer trust about their capacity to honor a promissory note
(d) they tried to hide the fact that their promissory notes weren�ft really money

17. The word �g unscrupulous�h in line 16 is closest in meaning to
(a) wealthy
(b) immoral
(c) smart
(d) experienced

18. Commercial banks supported their promissory notes by honoring to pay
(a) in coins
(b) in kind
(c) in theory
(d) in gold or silver

19. According to the passage, a commercial bank could have to close if
(a) it did not have enough gold and silver
(b) too many customers wanted to present their promissory notes for payment
(c) the value of money in coins was not about equal with the value of gold and silver
(d) lost its charter

20. The word �gequivalent�h in line 23 is closest in meaning to
(a) amount
(b) value
(c) safe
(d) interchangeable

[Hippo]

Hi An Min,

Long time no see ;-)
Hope you are ok!

Here go my answers:
11. C (may be D)
12. B
13. A
14. A
15. C
16. B
17. B
18. D
19. B
20. D

Best regards.

[hsengoren]

Hi An Min, We missed you and your questions.

Q.16 I say D

16. Which of following is the most likely inference about the behavior of country and city banks in making personal loans?

(d) they tried to hide the fact that their promissory notes weren�ft really money

On the 2nd paragraph, it says:
Individuals and country and city banks made personal loans packed only by promissory notes, though the latter usually tried to hide the fact.


Q.19 I say C

19. According to the passage, a commercial bank could have to close if

(c) the value of money in coins was not about equal with the value of gold and silver

On the last paragraph, ýt says:

Merchants considered bank notes the equivalent of specie (money in coins). A bank that could not convert its notes into gold or silver was considered insolvent and could lose its charter.

On the rest, I don't have any objection.

[Hippo]

Hi An Min,

Could you post the answers that are stated to be right in your book?

Best regards.

[An Min]

11. Which of the following statements best expresses the main idea of the passage?
<font color="brown">(c)</font id="brown"> America developed its own banking institutions in response to local developments rather than duplicating those of England.

12. The word �genormous�h in line 3 is closest in meaning to
<font color="brown">(b)</font id="brown"> huge

13. Which of the following would be LEAST likely in a Colonial financial institution in America before the 1780s?
<font color="brown">(a)</font id="brown"> that it would be similar to a commercial bank

14. The word �gendured�h in line 7 is closest in meaning to
<font color="brown">(d)</font id="brown"> survived

15. The word �gwhich�h in line 10 refers to
<font color="brown">(c)</font id="brown"> land owner

16. Which of following is the most likely inference about the behavior of country and city banks in making personal loans?
<font color="brown">(c)</font id="brown"> they usually wanted to avoid risking a loss of customer trust about their capacity to honor a promissory note

17. The word �g unscrupulous�h in line 16 is closest in meaning to
<font color="brown">(b)</font id="brown"> immoral

18. Commercial banks supported their promissory notes by honoring to pay
<font color="brown">(d)</font id="brown"> in gold or silver

19. According to the passage, a commercial bank could have to close if
<font color="brown">(a)</font id="brown"> it did not have enough gold and silver

20. The word �gequivalent�h in line 23 is closest in meaning to
<font color="brown">(d)</font id="brown"> interchangeable

[Hippo]

Frankly speaking, I don't understand the answer for the 16th.
How do you think "loan, packed only by something" means that "the loan consits of only something"?