Which policy is most closely associated with Alexander Hamilton's economic program?

• A. Low tariffs on imports
• B. A national bank and assumption of state debts
• C. Free land grants to settlers
• D. Minimal government interference in the economy

Answer: (B)

Hamilton’s plan aimed to build a strong federal financial system that could stabilize the early United States and encourage growth. A national bank would create a single, stable currency, handle the government’s finances, and support lending for business and infrastructure. At the same time, having the federal government assume state debts from the Revolution would unify the states under a common financial framework, establish the United States’ credit, and give creditors a stake in the new government’s stability. Together, these ideas show how the federal government could actively shape the economy rather than leaving it largely to individuals or states.

The other options don’t align as closely with this approach. A stance of low tariffs contradicts Hamilton’s use of tariffs to protect and develop industry. Free land grants fit more with westward expansion and land policy. Minimal government interference reflects a leaning toward limited federal power, which is opposite of Hamilton’s goal of a strong central economy.