Asked by Adrian Moreno on Jun 08, 2024
Verified
What was President Martin Van Buren's new solution to the problem of what to do about the federal government's relationship to banking?
A) He called for federal money to be deposited in state-chartered banks known as "pets."
B) He proposed the creation of the Federal Reserve Bank, with branches in key cities.
C) He created the Third Bank of the United States, but this time headed by a reliable Democrat.
D) He set up a program of federal insurance on individual bank accounts to protect them in times of panic.
E) He proposed that federal funds be controlled by government officials rather than by bankers.
Martin Van Buren
The eighth President of the United States (1837-1841), known for his role in the establishment of the Democratic Party and his advocacy of the political machine system.
Federal Government's Relationship
The dynamic and structure of interaction between the national government of a country and its constituent states, local governments, or citizens.
Federal Funds
Reserve balances that private banks hold at their local Federal Reserve Bank, often lent out to meet overnight liquidity needs.
- Gain insight into the factors driving the controversy regarding the Bank of the United States and how it was responded to.
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Learning Objectives
- Gain insight into the factors driving the controversy regarding the Bank of the United States and how it was responded to.
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