Question

What happened to the money in the Second National Bank after the bank was dissolved by President Jackson?

It was lost in a recession.
It was retumed to its owners.
It was given to state banks.
It was given to common people.​

Answer 1

The money from the dissolved Second National Bank was transferred to various state banks, known as 'pet banks', which led to economic fluctuations and contributed to the Panic of 1837.

Step-by-step explanation:

After President Jackson dissolved the Second National Bank, the money that had been deposited in it did not simply get lost or returned to its original owners. Instead, Jackson redirected the federal funds to various state banks, which were sometimes referred to as 'pet banks.' This caused some economic instability and put pressure on state banks to support local lending. Consequently, this transfer of funds along with the subsequent shift towards a hard currency system contributed to the Panic of 1837, a financial crisis that resulted in a severe economic depression. The end of the Second Bank signified a turning point in U.S. banking and currency policy, aligning with President Jackson's stance against what he perceived as a concentration of power among the elite and a move towards a more decentralized banking system.