Which of the Following Statements Characterizes the Operations of the Bank

question 16

Multiple Choice

Which of the following statements characterizes the operations of the Bank of the United States in the twenty years after its 1791 chartering?

• A) The national bank was so successful that Jeffersonian Republicans embraced it and helped secure a new charter after the original charter expired.
• B) The bank had branches in eight major cities to respond to demands for commercial credit,and its profits averaged 8 percent annually.
• C) Serving as a central clearinghouse,the bank was able to prevent states from issuing much paper currency that wasn't backed by gold or silver.
• D) In most years,the bank did not make a profit,and operating subsidies from the federal government were required to keep it afloat.

---

Definitions:

Bankruptcy Code

A collection of federal laws and statutes that govern the process of bankruptcy in the United States.

Repayment Plan

An agreement between a borrower and a lender outlining how the borrower is to repay outstanding debts, often including terms for monthly payments and interest rates.

Debtor

An individual or entity that owes money to another called the creditor.

Involuntary Filings

Legal proceedings initiated by creditors against a debtor who fails to pay owed debts, often leading to bankruptcy.