SAT Subject US History Practice Question 853: Answer and Explanation
24. 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.
Correct Answer: B
The American System, a Whig program that originated after the War of 1812, was designed to promote industry by using the National Bank, tariffs, and internal improvements like roads and canals. The Federal Reserve System (A) was established in 1913, long after the bank was destroyed by Andrew Jackson between 1832 and 1836. Jackson placed the money from the Second Bank into "pet," or state, banks (C) as a way to eliminate the federal bank. Therefore, it was not a forerunner; it was fundamentally different. The First Bank of the United States was supported by Congress (D) in 1791. The Supreme Court declared the first bank constitutional in 1819 in the McCulloch v. Maryland decision.