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History of the US Banking System definitions

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  • Uniform Currency
    A standardized form of money issued nationwide, replacing individual bank notes and simplifying transactions across regions.
  • Central Bank
    An institution responsible for managing a nation's money supply and acting as a lender of last resort to stabilize the economy.
  • Bank Panic
    A widespread rush by depositors to withdraw funds due to fears of insolvency, often leading to financial instability.
  • Bank Run
    A situation where many customers withdraw deposits simultaneously, fearing the bank will fail and be unable to return their money.
  • Trust
    A financial entity managing assets for wealthy clients, often with less regulation and lower reserve requirements than banks.
  • Speculation
    The act of investing in high-risk assets with the hope of large returns, often contributing to financial crises.
  • Federal Reserve
    The central banking system established to control the money supply and prevent financial panics in the United States.
  • Great Depression
    A severe economic downturn in the 1930s marked by bank failures, plunging commodity prices, and widespread unemployment.
  • Glass-Steagall Act
    A 1933 law that created deposit insurance and separated commercial banking from investment banking to reduce risk.
  • FDIC
    A government agency insuring bank deposits up to a set limit, reassuring depositors their funds are protected even if a bank fails.
  • Commercial Bank
    A financial institution accepting deposits and offering checking accounts, with deposits insured by the government.
  • Investment Bank
    A financial institution focused on creating and trading financial assets, not covered by deposit insurance.
  • Savings and Loan Crisis
    A 1980s financial disaster caused by deregulation and risky investments, resulting in massive government bailouts.
  • Money Market Account
    A type of financial account offering higher interest rates, attracting depositors away from traditional savings institutions.
  • Commodity Prices
    The market values of basic goods like agricultural products, whose declines can trigger economic downturns and bank runs.