What action did Jackson take regarding the federal Bank that contributed to the rise of pet banks?

• A. Withdraw funds from the Bank
• B. Recharter the Bank
• C. Strengthen the Bank
• D. Nationalize the Bank

Answer: (A)

The action being tested is removing the government’s money from the national bank and putting it into state banks. When Jackson began withdrawing federal deposits from the Bank of the United States and depositing those funds in various state-chartered banks, the federal institution lost its control over national finances. That weakened the Bank and allowed local, state-chartered banks—often called pet banks—to expand and take over much of the government’s banking business.

This change is what explains why pet banks rose: the government funds moved away from the national bank and into smaller, state banks. The other options don’t fit as leading causes—blocking a recharter mattered politically, but the rise of pet banks came from shifting funds out of the federal bank and into state banks.