Financial History and the Great Depression

This set of flashcards covers key concepts, events, and terms related to financial history, focusing on the Roaring 20s and the Great Depression.

The Roaring 20s

A period of economic prosperity and cultural change in America following World War I, characterized by consumerism and the rise of radio advertisements.

Black Thursday

October 24, 1929, when the stock market crashed as investors began selling massive amounts of shares, leading to a significant drop in stock prices.

The Great Depression

The worst economic downturn in industrialized history, starting with the stock market crash in 1929 and characterized by massive unemployment and widespread poverty.

Dow Jones

An index that indicates the value of a selection of stocks and is used to represent the overall market performance.

Speculation

The practice of buying financial assets with the hope that they will rise in value, often associated with higher risks.

Federal Deposit Insurance Corporation (FDIC)

A U.S. government agency created to protect bank deposits and restore trust in the American banking system after the Great Depression.

Securities Exchange Commission (SEC)

A U.S. government agency responsible for regulating the securities industry and protecting investors, established in response to financial market abuses.

Interest Rates

The cost of borrowing money, which can influence consumer spending and investment in the economy.

Prohibition

A nationwide ban on the production, importation, transportation, and sale of alcoholic beverages in the United States during the 1920s.

Fiscal Intervention

Government policies aimed at influencing the economy through spending and taxation, especially relevant during economic downturns.