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

A Congress should not be involved in creating banks.

B McCulloch could continue to pay state, not federal, taxes.

C Congress had the power to create a federal bank.

D McCulloch could run a state bank under federal laws.

By ruling in James McCulloch’s favor in McCulloch v. Maryland, the Supreme Court agreed that " C Congress had the power to create a federal bank," since it upheld the federal government's right to regulate commerce.

C. Congress had the power to create a federal bank--Maryland sued McCulloch for not paying state taxes they placed on the National Bank.

In the Supreme Court case, the Court stated the state had no right to tax a federal institution such as the National Bank. By making this ruling the Supreme Court held the right of Congress to have a National Bank and stating the National Bank had supremacy over the states. The National Bank fell under implied powers of the Federal government.