4.2 The Great Depression & New Deal

Federal Reserve

central banking system of the United States, created in 1913 to regulates banking and the money supply

monetary policy

means by which the Federal Reserve regulates the amount of money available in the economy

speculation

An involvement in risky business transactions in an effort to make a quick or large profit.

consumer debt

money owed as a result of purchasing goods that cannot be immediately paid back

Great Depression

the economic crisis beginning with the stock market crash in 1929 and continuing through the 1930s

New Deal

Franklin Roosevelt's economic reform program designed to solve the problems of the Great Depression

Works Progress Administration

New Deal program that provided work relief through various public projects

National Recovery Administration

New Deal program that promoted economic recovery by regulating production, prices, and wages

installment buying

method of purchase in which buyer makes a small down payment and then pays off the rest of the debt in regular monthly payments

Dust Bowl

Region of the Great Plains that experienced a drought in 1930 lasting for a decade, leaving many farmers without work or substantial wages.

Black Tuesday (October 29, 1929)

stock market crashed, led to panic of 1929

Hoovervilles

Depression shantytowns, named after the president whom many blamed for their financial distress

FDIC (Federal Deposit Insurance Corporation)

an agency developed by the federal government to regulate banking and insure people's money in case of a bank failure

Franklin D. Roosevelt

Democrat President from 1933-1945. He began New Deal programs to help the nation out of the Great Depression, and was the nation's leader during most of WWII

Herbert Hoover

Republican president of the U.S from 1929-1933 leader of the US in the beginning of the great depression.