Question

SELECT ALL THAT APPLY

The Bank of the United States would:

hold funds on deposit

lend money to the government when necessary

close on mortgages

issue money

Answer 1

The Bank of the United States would: hold funds on deposit.

Answer 2

The correct answers are A) hold funds on deposit and D) issue money.

The Bank of the United States would: hold funds on deposit and issue money.

In 1791, Alexander Hamilton, Secretary of the Treasury, proposed the creation of the Bank of the United States. It would function basically as a government fiscal agent and a storehouse of federal funds. The bank ended operations in 1811. But five years later, another bank was created. It was the Second Bank of the United States. President Jackson did not like the idea and retired all the funds of the bank and put it in different states banks. The Second Bank of the United States ended operations in 1836.