Florida Teacher Certification Examinations (FTCE) Social Science Practice Test

Who was more likely to favor the establishment of a national bank in the 1790s?

1. Thomas Jefferson

2. Alexander Hamilton

3. John Adams

4. James Madison

The correct answer is: Alexander Hamilton

Alexander Hamilton was more likely to favor the establishment of a national bank in the 1790s due to his belief in a strong central government and the need for a stable financial system. As the first Secretary of the Treasury, Hamilton advocated for a national bank as a means to effectively manage the country’s finances, facilitate the collection of taxes, and provide loans to the government as well as promote economic development. Hamilton’s vision was rooted in the idea that a national bank could unify the nation’s financial system and support the fledgling economy by providing a stable currency and credit. He saw the bank as a way to encourage investment and stimulate commerce, which he viewed as critical to the U.S. becoming economically independent and prosperous. This perspective aligned with his broader economic policies that favored industrialization and a robust federal government. In contrast, Thomas Jefferson and James Madison held differing views, believing that a national bank would concentrate too much power in the federal government and potentially infringe upon the rights of the states and individual citizens. Jefferson and Madison were proponents of agrarian interests and feared that a strong financial institution would serve the interests of the wealthy elite at the expense of common citizens. John Adams, while generally supportive of economic stability, aligned more closely with Hamilton on certain