Practice Quiz

AP US History

Category - History

Start a Study Session Sign up for Question of the Day
What was the Panic of 1819?
  1. The first major slave rebellion
  2. The first major financial crisis in the United States
  3. The first time that the South hinted at possible secession from the Union
  4. The South’s name for the Missouri Compromise, which forbid slavery north of the 36°30’ line
Explanation
Answer - B - The Panic of 1819 was the first major financial crisis in the United States.

Key Takeaway: The first major financial crisis in the United States was caused by the great availability of cheap land in the West. Western banks would loan sums of money to buyers, hoping that the price on the land would eventually rise. When it didn’t, the banks lost their investments and were forced to foreclose on hundreds of Western farms. Because the banks were not able to return the investments to the Bank of the United States with currency, the circulating money supply became extremely restricted, leading to financial crisis.
Was this helpful? Upvote!
Login to contribute your own answer or details
Start a Study Session Sign up for Question of the Day

Top questions

Related questions

Most popular on PracticeQuiz