Final answer:
Hamilton's five-step federal bank plan included the creation, funding, assumption, charter, and operation of the Bank of the United States. The plan aimed to stabilize the economy, manage debt, standardize currency, and strengthen the government's fiscal foundation.
Step-by-step explanation:
The five steps to Hamilton's federal bank plan are most accurately described by option C) Creation, Funding, Assumption, Charter, Operation. Alexander Hamilton, serving as George Washington's Secretary of the Treasury, aimed at resolving the financial woes of the post-Confederation United States through several key measures.
The creation of a national bank was intended to stabilize and improve the nation's credit, and manage debt incurred during the Revolutionary War. To fund the bank, Hamilton proposed a capitalization of $10 million, with the government owning 20% of the stock. The assumption step involved the federal government assuming state debts, which helped in centralizing fiscal control and creditworthiness. Once agreed upon, a charter for the Bank of the United States was to be established, to be renewed every twenty years. Lastly, the broader operation of the bank included holding government deposits, issuing currency, and regulating state banks.
Hamilton's plan also tackled issues by regulating and issuing paper currency, which was beneficial because it could be exchanged at face value for species, providing a stable and reliable form of money. Furthermore, the federal bank would serve as a government depository and creditor, helping to formalize and enhance the fiscal structure of the young nation.