Tuesday, January 28, 2014

CUA at Naval Academy Conference

CUA School of Business students Schultz McLean (far left) and Jack MCann (far right) and MSBA Director Stewart McHie with former Vice President Dick Cheney following his address to the Naval Academy Leadership Conference in Annapolis last night. 

60 universities are represented along with all service academies in four day conference at the Academy. Very impressive speakers and panels. 
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Friday, January 24, 2014

MSBA Student Lends Experience to Peace Corps

''Adrian Sanchez, a 2012 MSBA graduate, is a Community Economic Development Volunteer with the Peace Corps in Paraguay, South America.  The Peace Corps is a federal agency of the U.S. government whose mission is to promote world peace and development by providing qualified volunteers to interested countries in need of trained men and women.  By fostering a better understanding of Americans on the part of the people served, the Peace Corps seeks to make a positive impact around the world."

Adrian's work focuses on one-on-one small business consulting with young entrepreneurs, many of which are agricultural farmers and commercial business owners.  He helps improve their marketing, accounting, finance, and general business management.  He works alongside micro-financing credit union banks where he ensures that small business owners can get appropriate operational loans for their businesses.  Adrian also works on personal finance advising for individual families and youth civic engagement with the local city government.  In addition, as side projects, he teaches Business Management, Leadership and English at universities at his site.

Check out his personal blog on his Peace Corps service at www.adrianmsanchez.com.''

Congratulations Adrian for making a difference!

Stewart McHie
Director, Master of Science in Business Analysis
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Tuesday, January 7, 2014

How to Rock an Interview

How to Rock an Interview and Make a Lasting Impression

Check out this article written by a former CUA student, Jenna Boyer! She is currently an Account Executive at Hager Sharp Inc., a public relations firm in DC. She supports a variety of clients and assists with social media, graphic design, media outreach and partnership development. She graduated with a Bachelor of Arts in Media Studies and a Minor in Spanish.

Marykate Kelly
Corporate Relations Manager
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Saturday, January 4, 2014

What is the Federal Reserve Bank

By Kelly Campbell, Founder and CEO of Campbell Wealth Management

The Federal Reserve System, or The Fed, for short, is the central banking system of the U.S.  There are 12 large regional banks in the system.  Created in 1913, the Fed is tasked with three primary objectives: 

1)      Moderate long term interest rates
2)      Stabilize prices (inflation)
3)      Maximize employment

The Fed also plays the role of the United States’ central bank.  A central bank serves as the bankers’ bank and the government’s bank. 

Originally the Fed was created to address banking panics.  In 1907 a stock market collapse led to a run on banks.  Banks are only required to hold a fraction of their deposits in reserve, the rest is loaned out.  In 1907, depositors were concerned that the money that they had deposited in their banks would no longer be there, so they withdrew funds en masse.  This led to the collapse of many banks. 

The Fed now acts as a “lender of last resort”, and stands ready to lend the necessary funds to banks if/when a run occurs.  That way, depositors get their money back, and the banks are able to collect the proceeds from the loans that they have made over time.  On occasion, a private bank may not have enough funds in reserve due to timing of its loans, or unexpected larger amounts of withdrawals.  The private bank can then borrow from the Fed to make up for the temporary shortfall.  The interest rate that the Fed makes these short term loans to institutions is called the Discount Rate.

Banks in the US keep a portion of their reserves at the Fed, which enables the Fed to be the go-between between private banks lending to one another.  The Fed regulates the interest rate that these institutions can lend to each other.  This rate is called the Fed Funds Rate. 

Another role of a central bank is to regulate the money supply.  The Fed issues paper and coin currency, while the US Treasury actually prints the currency.   The Fed also plays an important role in the U.S. payments system, by providing banking services to the Federal government as well as private banks.   These services include payment processing, electronically transferring funds, and processing US government securities. 

By controlling the money supply the Fed Funds Rate and the Discount Rate, the Fed has the ability to influence inflation and overall interest rates, which indirectly affects many economic activities such as capital spending and employment.  These are the primary tools utilized to achieve its stated objectives.

The Fed is unique in that it is not really a government institution.  The Fed receives no funding from your tax dollars.  The seven-member Board of Governors is appointed by the President, but must be confirmed by the Senate.  Governors serve 14 year terms. 

Kelly Campbell
Founder and CEO, Campbell Wealth Management
Alexandria, VA
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