Final answer:
The assertion that the Panic of 1819 increased faith in the Second Bank of the United States is false. The crisis instead damaged the bank's reputation due to its stringent credit policies during a time of financial strife.
Step-by-step explanation:
The statement that the Panic of 1819 increased the American people's faith in the Second Bank of the United States is false. In fact, the Panic of 1819 did the opposite; it severely damaged the reputation of the Second Bank and caused the public to lose confidence in the institution.
The Panic of 1819 was the first major financial crisis in the United States and was marked by widespread foreclosures, bank failures, unemployment, and a slump in agriculture and manufacturing. The economic distress was partly blamed on the Second Bank's tight credit and monetary policies, which included calling in loans and restricting credit availability in an effort to curtail inflation. This contributed to a view of the bank as an oppressive force and led to significant mistrust among the American populace.