How Did Nicholas Biddle, the Director of the Second Bank

question 33

Multiple Choice

How did Nicholas Biddle, the director of the Second Bank of the United States, instigate the bank war with Andrew Jackson?

• A) As one of Jackson's critics, Biddle made an early application to renew the Bank's charter, knowing Jackson would veto it and possibly harm his own political reputation.
• B) Biddle began transferring the Bank's funds without Jackson's approval to state banks that were nicknamed "pet banks."
• C) Biddle claimed that as the Bank's director, he, and not the president, had "exclusive privilege" regarding whom the Bank could loan money to and financially support in other ways.
• D) Biddle gave numerous loans to Indian tribes facing removal by Jackson's orders, so they could legally purchase their tribal lands and remain there.

---

Definitions:

Chain Saws

Mechanical tools equipped with a rotating chain with teeth that are used for cutting through wood or other materials.

Perfectly Inelastic

A situation in which demand or supply does not respond at all to changes in price levels, illustrated by a vertical demand or supply curve.

Demand Curve

A graphical representation showing the relationship between the price of a good or service and the quantity demanded by consumers.

Income Effect

That part of an increase (decrease) in amount consumed that is the result of the consumer’s real income being expanded (contracted) by a reduction (rise) in the price of a good.