What significant action did Andrew Jackson take regarding federal funds after his inauguration?

After his inauguration, Andrew Jackson took the significant action of withdrawing federal funds from the Second Bank of the United States and redistributing them to various state and private banks. This decision was rooted in Jackson's strong opposition to the national bank, which he viewed as a symbol of elite privilege and corruption. He believed that the bank had too much power over the economy and that it favored wealthy investors over the common people.

By redistributing the funds, Jackson aimed to diminish the influence of the Second Bank and empower what he considered to be local, more accountable financial institutions. This action was particularly controversial and led to significant economic consequences, including contributing to inflation and the eventual financial panic known as the Panic of 1837.

In contrast, the other options do not accurately reflect Jackson's policies. Investing in the Second Bank would have contradicted his opposition to it, increasing deposits in federal reserves would imply maintaining a strong central financial institution, and distributing funds equally among all states does not align with his targeted approach to undermining the national bank's influence.