Council of Economic Advisers
federal reserve
(most important) develops monetary policy
budget process begins
18 months prior to implementation
members of federal reserve
appointed by president and senate confirms
president
appoints members of CEA
open market operations
buying and selling of government bonds
why implementation 18 months prior is a problem
conditions could change within that time period which would make their recommendations invalid
senate
confirms members of CEA
employment act of 1945
created the council of economic advisors
selling of bonds
decreases money supply
joining federal reserve
deposit a percent of cash as collateral
functions of CEA
economic analysis/forecasting, policy advice, education
another function of OMB
evaluates all other government agencies
what is in each state?
federal reserve bank
discount rate
federal reserve charges banks that borrow
buying of bonds
increases money supply
selling of bonds attacks
inflation
major function of the office of management and and budget (OMB)
makes budget
adjust reserve requirements
money bank has to put up as collateral to federal reserve
federally chartered banks
must belong to federal reserve
1
number of board chairmen
12
number of districts nation is divided into
7
number of federal reserve members
weapons of federal reserve
open market and adjusting reserve requirements
state chartered banks
optional to belong to federal reserve
budget
plan of income and expenses
buying of bonds attacks
recession
deficit spending
recommended to stimulate economy
main function of federal reserve
supply cash and keep economy stable
14
term length of federal reserve members
independent
type of agency of federal reserve