Question

The Second Bank of the United States was founded soon after the demise of the first bank of the United States because policymakers realized that the demise of the First Bank of the United States raised interest rates on government debt. the War of 1812 convinced key policymakers of the need for an institution to help issue federal government bonds, regulate currency, and preserve fiscal order. policymakers realized that the demise of the First Bank of the United States led to speculative and wildcat banking. policymakers realized that the demise of the First Bank of the United States triggered inflation policymakers realized the dissolution of the first Bank of the United States triggered the Panic of 1819. the War of 1812 convinced policymakers of the need to compete with the Bank of England and Banque of France policymakers realized that the demise of the First Bank of the United States triggered hyperinflation

Answer 1

The Second Bank of the United States was founded because policymakers realized that the demise of the First Bank of the United States raised interest rates on government debt. The War of 1812 convinced key policymakers of the need for an institution to help issue federal government bonds, regulate currency, and preserve fiscal order.The policymakers also realized that the demise of the First Bank of the United States led to speculative and wildcat banking which was a serious concern. Therefore, the Second Bank of the United States was established in 1816 to stabilize the currency and control inflation.

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