Advanced Placement US History (AP US History) Practice Exam 2025 - Free AP US History Practice Questions and Study Guide

The McCullough v. Maryland decision, delivered by the Supreme Court in 1819, established significant principles about the power of the federal government and its relationship with the states. The correct understanding lies in the Court's ruling that the federal government possesses powers beyond those explicitly enumerated in the Constitution. This was grounded in the concept of implied powers, which allow the federal government to take actions that are not specifically outlined in the Constitution, as long as they are in pursuit of its constitutional responsibilities.

In this case, the Court upheld the constitutionality of the Second Bank of the United States and affirmed that the federal government had the authority to create a national bank through its implied powers, even if such an institution was not explicitly mentioned in the Constitution. This decision reinforced the notion of federal supremacy and set a precedent for broad interpretations of federal powers, shaping the future relationship between state and federal governments.

The other options do not accurately reflect the implications of this landmark ruling. States nullifying federal laws, handling their own financial institutions in a disconnected manner, or limiting taxation powers do not align with the central takeaway from the McCullough v. Maryland case, which emphasized the federal government's expansive powers under the Constitution.