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.

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.

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.