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In McCulloch v. Maryland, what did the Supreme Court decide Congress could do?
ACollect a state tax on out-of-state banks
BCreate a national bank without express wording
CStrike down the charter of the First Bank
DOrder Maryland to charter its own state bank
Answer & Solution
Correct answer: B. Create a national bank without express wording
1. Maryland taxed the Second Bank of the United States, and bank agent James McCulloch refused to pay.
2. The case asked whether Congress had the authority to charter a national bank at all.
3. Chief Justice John Marshall answered yes: Congress could create the bank even though the Constitution did not expressly authorize it.
4. The necessary and proper clause let Congress choose appropriate means for carrying out its listed powers.
5. The Court also blocked Maryland's tax on the bank, so the option about collecting the tax reverses the outcome.
_Source: OpenStax American Government 3e (CC BY 4.0), Ch 3 "American Federalism", section 3.2 The Evolution of American Federalism_
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