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Pet Bank is another term for state banks. President Andrew Jackson, who hated the bank of the United States, took steps to disenfranchise it by emptying eat of all funds, and proceeding to transfer its funds to several pet banks. There was no currency backing up these banks. As a result, when economic issues, and over inflated spending occurred, the country entered a recession because there was no longer a federal bank with funding to ease the Panic of 1837.
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Wildcat speculation before the panic of 1837 was the result of the?
deposit of federal funds in pet banks
What was it called when banks failed and land values dropped?
The Panic of 1837.
Why did banks fail and land values drop in 1824?
Because of the Panic of 1837
What were the Causes and effects of the panic of 1837?
Hundreds of banks closed, High Unemployment, and a five year depression
When was the following was a direct cause of the Panic of 1837?
There were a number of causes to the financial crisis known as "The Panic of 1837", including the economic policies of President Jackson and most of the banks of the area, ceasing payment in silver and gold.
Wildcat speculation before the panic of 1837 was the result of the?
deposit of federal funds in pet banks
What was it called when banks failed and land values dropped?
The Panic of 1837.
Why did banks fail and land values drop in 1824?
Because of the Panic of 1837
What were the Causes and effects of the panic of 1837?
Hundreds of banks closed, High Unemployment, and a five year depression
How did the federal government's hard-money policies contribute to the Panic of 1837?
the specie circular put more pressure on the already-strained state banks to call in loans so they would have sufficient gold and silver resources on hand
When was the following was a direct cause of the Panic of 1837?
There were a number of causes to the financial crisis known as "The Panic of 1837", including the economic policies of President Jackson and most of the banks of the area, ceasing payment in silver and gold.
How did jacksons policies contribute to the panic of 1837?
They were directly related to the economic panic of 1837 since he destroyed the bank of the US that could easily transfer money between areas that were in flush with cash to areas that were short on cash. Jackson took the money from the Bank of the US and put it in state banks that coincidentally had Jackson on the Board of Directors. These state banks also contributed by printing their own money and increasing inflation.
Why did many banks go out of business as a result of the panic of 1837?
Interest rates were very high, and caused many banks to shut down due to lack of money.
What caused the Panic of 1837 and subsequent depression?
The Panic of 1837 was a depression. Panic was then used for what we now call a depression. The Panic of 1837 was caused in part by some of President Andrew Jackson's economic policies, like the Specie Circular, not renewing the charter of the Second Bank of the US, placing government funds in "pet banks." and no government regulation of various business practices.
Why did Andrew Jackson take away the federal charter?
he was not in favor of banks he knew they would bring trouble... he set up state banks that were called "pet banks" these later resulted in Panic of 1837
When did the panic of 1837 occur?
It Occured on May 10, 1837
Financial panic Andrew Jackson responsible for?
Panic of 1837
