U.S. History STAAR Practice Test 2026 - Free Practice Questions for State of Texas Assessments of Academic Readiness

During Andrew Jackson's presidency, 'pet banks' referred to state banks that were designated to handle government funds after he opposed the Second Bank of the United States. In a significant move to dismantle the national bank, Jackson ordered the withdrawal of federal deposits and redirected these funds to various state banks that were politically favored, effectively giving them the nickname 'pet banks.' This strategy was part of his broader campaign against what he viewed as the corrupt and elitist nature of the national bank, asserting that these state banks would better serve the interests of the common people. By channeling federal funds into these state institutions, Jackson sought to decentralize financial power and promote a more localized banking system, impacting the economy and banking landscape of the time.