U.S. History STAAR ( State of Texas Assessments of Academic Readiness) Practice Test

Disable ads (and more) with a membership for a one time $2.99 payment

Study for the U.S. History STAAR Test. Engage with flashcards and multiple choice questions, each offering hints and explanations. Prepare effectively for your exam!

Each practice test/flash card set has 50 randomly selected questions from a bank of over 500. You'll get a new set of questions each time!

Practice this question and more.

What were 'pet banks' during Andrew Jackson's presidency?

State banks used to hold private deposits
National banks that controlled the federal currency
State banks that handled government funds
Foreign banks used for trade

The correct answer is: State banks that handled government funds

During Andrew Jackson's presidency, 'pet banks' referred to state banks that were designated to handle government funds after he opposed the Second Bank of the United States. In a significant move to dismantle the national bank, Jackson ordered the withdrawal of federal deposits and redirected these funds to various state banks that were politically favored, effectively giving them the nickname 'pet banks.' This strategy was part of his broader campaign against what he viewed as the corrupt and elitist nature of the national bank, asserting that these state banks would better serve the interests of the common people. By channeling federal funds into these state institutions, Jackson sought to decentralize financial power and promote a more localized banking system, impacting the economy and banking landscape of the time.