Final answer:
The Bureau of Engraving and Printing produces U.S. paper currency, while the U.S. Mint manufactures coins. The Federal Reserve backs modern U.S. bills as fiat money. The Panic of 1819 decreased faith in the Second Bank of the USA.
Step-by-step explanation:
The statement that the U.S. Mint produces the 'paper money', while the Federal Bureau of Printing and Engraving produces coins is false. In reality, the Bureau of Engraving and Printing (BEP) is responsible for producing U.S. paper currency, not the U.S. Mint. The U.S. Mint is the organization that manufactures coins.
Furthermore, historically the Federal Reserve now backs U.S. bills as fiat money, which is inconvertible paper money made legal tender by a government decree. This is a shift from the time before 1958, when U.S. currency such as silver certificates were commodity-backed, specifically by silver.
The Panic of 1819 did not increase the American people's faith in the Second Bank of the United States, so the correct answer there would be 'b. False'.