Question

Pet banks were: a. state banks that received federal government deposits b. chartered in 1832 for the express purpose of handling foreign investments c. those established by Jackson’s executive order in 1829 d. banks owned by Jackson’s biggest political cronies e. allowed to issue notes that were not covered by specie reserves

Answer 1

Answer:

a. state banks that received federal government deposits.

Explanation:

Pet banks were a type of state banks that were common during the presidency of Andrew Jackson. The term "pet banks" was most commonly used by people who opposed to the president. These were state banks that were selected in order to receive large amounts of government money. Moreover, this practice was criticized because these banks were controlled by political friends of the president.