Why Was the Creation of a National Bank Controversial

question 11

Multiple Choice

Why was the creation of a national bank controversial?

• A)A national bank would not have any power to regulate the role of state-chartered banks in issuing paper currency.
• B)Madison, Jefferson, and their supporters argued that the Constitution did not say anything about creating one.
• C)A national bank would not have any power to transfer monies to other nations.
• D)A national bank would set the precedent that future lawmakers must follow the original language of the Constitution word for word.
• E)Business loans would no longer be possible under a national bank, leading to economic distress.

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Definitions:

Preexisting Duty

An obligation that a party is already legally bound to fulfill, which cannot serve as consideration for a new contract.

Bilateral Contract

An agreement between two parties where each promises to perform an act in exchange for the other's performance.

Unilateral Contract

A contract where one party makes a promise in exchange for an act by another party, becoming binding upon the performance of the act.

Past Consideration

In contract law, a benefit or service previously performed and therefore cannot serve as consideration for a current contract.