Jacksonian Democracy and Populism · US History

Andrew Jackson's 'Pet Banks' were:

  1. The first banks in the U.S. to allow loans for small business owners
  2. Federal banks established specifically to manage and safeguard the funds of Native American tribes
  3. State-level banks where federal funds were deposited after being removed from the National Bank
  4. Banks that were owned and operated by members of the Whig Party
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Correct answer: State-level banks where federal funds were deposited after being removed from the National Bank

To ensure the Second Bank of the United States died before its charter expired, Jackson had his Secretary of the Treasury deposit federal revenue into various loyal state banks. These banks often engaged in reckless lending, contributing to the economic instability of the late 1830s.

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