Question

The Second Bank of the United States was important in that it _________________________________.

• A. became a part of the Federal Reserve System of 1913.
• B. was the central component of the American System supported by the Whigs.
• C. was the forerunner of the pet banks of the 1830s.
• D. was the substitute bank supported by Alexander Hamilton after the first Bank of the United States was rejected by Congress.
• E. was struck down by the Supreme Court in the Gibbons v. Ogden decision.

Answer 1

The correct option is B was the central component of the American System supported by the Whigs.

The Second Bank of the United States was important in that it was the central component of the American System supported by the Whigs. It was chartered for many of the same reasons as its predecessor, the First Bank of the United States. The War of 1812 had left a formidable debt. Inflation surged ever upward due to the ever-increasing amount of notes issued by private banks.