Chapter Eight Varieties of American Nationalism Multiple Choice Questions 1. The experience of American banking during the War of 1812 revealed the need for A. another national bank. B. more state banks. C. a reduction in gold and silver reserves. an increase in the number of bank notes in circulation. currency backed by both gold and silver. Ans: A Page: 204 2. Which of the following statements about American currency and banking in this era is FALSE? Counterfeiting was a serious problem. The national bank forbade state banks from issuing their own notes. Congress rechartered the Bank of the United States in 1816. Vast quantities of varying bank notes created confusion over currency. The second Bank of the United States had more capital than its predecessor.