Question

By ruling in James McCulloch’s favor in McCulloch v. Maryland, the Supreme Court agreed that

Congress should not be involved in creating banks.
McCulloch could continue to pay state, not federal, taxes.
Congress had the power to create a federal bank.
McCulloch could run a state bank under federal laws.

Answer 1

Congress had the power to create a federal bank. The Court also ruled that states cannot tax federal institutions (the "power to tax is the power to destroy").