What happened in 1836, when president jackson ordered all land sales to be completed with silver and gold?
a. people spent their paper money on foreign goods.
b. cotton and grain markets soared.
c. banks printed their own paper money.
d. manufacturing grew rapidly.

The answer is

a.  People spent their paper money on foreign goods.

The American territorial expansion of the first half of the 19th century encouraged speculation, so citizens asked for a loan from a bank, bought land, and sold it after a time at a much higher price, which allowed them to pay back the loan, its interests and earn a large sum. These flows of paper money caused the banks to reach their limit, so they had to produce a symbolic document as paper money equivalent to a certain value, for example, 100, 150, or 200 dollars, with the issuance of these documents the bank promised to pay the value to the bearer even though he lacked the necessary funds for payment. People assumed this measure as a risk of default by the bank, so they began to demand their payments in "gold and silver", which caused the devaluation of paper money. The government was informed about this situation that caused citizens to invest their resources in foreign assets because the assets that were owned by the state could only be acquired through paper money. That situation caused that the State which was the owner of all the territory located outside the state borders, and the first link in the land sales chain, announced the "Circular of the metal" on 11 July, which demanded that the land sold by it could be paid by gold or silver to draw citizens attention to the purchase of goods without the need for paper money. According to the above the correct answer is A. People spent their paper money on foreign goods.

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