Question

8

1 point
How did President Jackson's pet banks contribute to the panic of 1837?
The banks printed more bank notes than specie(gold and silver) they had on deposit
The banks loaned too much money to businesses that failed
The banks refused to accept deposits of federal tax revenues
The banks accepted paper currency for purchases of public lands

Answer 1

President Jackson's pet banks contributed to the panic of 1837 through printing excessive bank notes, loaning too much money to failed businesses, and accepting paper currency for land purchases.

Step-by-step explanation:

President Jackson's pet banks contributed to the panic of 1837 in multiple ways. One major factor was that these banks printed more bank notes than the specie (gold and silver) they had on deposit. This led to an excess of paper currency in circulation, which in turn caused inflation and a decrease in the value of money. Additionally, these banks loaned too much money to businesses that ultimately failed, contributing to the economic downfall. Lastly, the pet banks accepted paper currency for purchases of public lands, which further increased the circulation of paper money without sufficient backing.

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