Scale 11 Vocab Flashcards
Bank run
a financial crisis in which a large number of customers simultaneously attempt to withdraw their money from a bank out of fear that the bank will close
Bear market
a period in which stock prices are steadily decreasing
Bull market
a period in which stock prices are steadily rising
Buying on margin
buying stock by paying a percentage of a stock’s price and borrowing the rest of the money from a broker, allowing one to make greater profits if the stock does well
Discount rate
the rate of interest at which banks that belong to the Federal Reserve System can borrow money from Federal Reserve banks
Federal Reserve System
the central banking authority of the United States, which manages the nation’s money supply
Interest
the charge made by a bank for the use of money deposited in an account
Overproduction
a situation in which more goods are being produced than people can afford to buy
Stock market crash
in October 1929, the period of plunging stock market prices that helped initiate the Great Depression
Underconsumption
a situation in which people are purchasing fewer goods than the economy is producing
Conservative
Someone who cherishes and seeks to preserve traditional customs and value.
Libral
Someone who is committed to the EXPANSION of liberty.
The new deal
President Franklin D. Roosevelt’s domestic program from 1933 to 1939, which aimed to bring about immediate economic relief from the Great Depression
Radical
someone who wants to make sweeping social, political, or economical changes in a society
Social security
Federal programs established in 1935, as part of the New Deal, to offer old-age assistance and benefits, unemployment compensation, and aid to needy mothers, children, and the blind
Welfare state
a social system in which the government takes responsibility for the economic well being of its citizens by providing programs and direct assistance
Securities and exchange Commision
government agency created in 1934, as part of the New Deal, to supervise stock exchanges and to punish fraud in stock trading
Federal deposit insurance corporation
government agency created in 1933, as part of the New Deal, to insure individuals’ bank accounts, protecting people against losses due to bank failures
Black tuesday
October 29, 1929; date of the worst stock-market crash in American history and beginning of the Great Depression.
Hawley-Smoot tarrif
charged a high tax for imports thereby leading to less trade between America and foreign countries, along with some economic retaliation, worsened The Great Depression
