Final answer:
The Panic of 1837 was caused by a combination of domestic credit expansion due to insufficient regulation and international economic distress due to declines in commodity prices. It was not primarily the result of the options provided in the question; therefore, the correct response to the question must encompass a mix of both economic mismanagement at home and abroad.
Step-by-step explanation:
The major cause of the Panic of 1837 was not due to an oversupply of currency, a surplus of government revenue, a surge in exports, or agricultural failures. Instead, the crisis was largely precipitated by a combination of domestic and international economic factors. Andrew Jackson's attack on the bank removed checks on credit expansion, leading to inflation. Internationally, worries from British bankers about rising commodity prices led to demands for payment in specie (gold or silver), causing a decline in the price of cotton and leading to financial instability.
During the mid-1830s, under Martin Van Buren's presidency, the boom period of the economy came to an end. Bank policies and over-speculation had pumped too much credit into the economy, and when confidence waned, a major depression hit. Another contributing factor was the decrease in British investment, affecting the American banking system and causing a suspension of specie payments. This suspension in turn eroded public confidence and led to widespread economic panic.
Answer: C. The Panic of 1837 was caused by a sudden and unexpected surge in American exports.