Advanced Placement US History (AP US History) Practice Exam

What was established by McCullough v. Maryland?

1. The necessity of state banks for local economies

2. The power of federal government to tax states

3. The federal government had implied powers to create a national bank

4. The authority of states to regulate trade

The correct answer is: The federal government had implied powers to create a national bank

McCullough v. Maryland, decided in 1819, established the principle that the federal government has implied powers beyond those explicitly enumerated in the Constitution, empowering it to create a national bank. This landmark Supreme Court case affirmed that the Constitution grants Congress the authority to enact laws deemed necessary and proper for executing its enumerated powers. This implied power justified the creation of a national bank, which was deemed essential for managing the country’s financial system effectively. The decision strengthened the notion of federal supremacy, illustrating that states could not impose taxes on federal institutions, such as the national bank, thereby reinforcing the idea of a strong central government. This case also laid a critical foundation for later interpretations of government powers and federalism, emphasizing the flexibility of the Constitution to accommodate the needs of a growing nation.