Final answer:
The Panic of 1819 led to a loss of faith in the Second Bank of the United States as it heralded a financial crisis with banks foreclosing on homes and calling in debts, resulting in economic hardships that diminished the public's trust in financial institutions.
Step-by-step explanation:
The question 'The Panic of 1819 increased the American people's faith in the Second Bank of the United States' can be answered as false. The Panic of 1819 was one of the first major financial crises in the United States, resulting in widespread foreclosures, bankruptcies, and economic hardships.
Many homes faced foreclosure and countless individuals experienced financial ruin. This situation damaged public confidence in the banking system, including the Second Bank of the United States, as the financial institutions were perceived to be doing more harm than good for the American economy.
Furthermore, the national response included calls for "stay laws" to provide debtors with more time to pay off their debts, abolition of debtor's prisons, and efforts to reduce state and federal expenditures to alleviate the populace's tax burden. It took several years for the economy to recover, creating longstanding suspicion among those impacted by financial institutions.