Examples of centralization in the following topics:
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- Centralization is the concentration of span of control, decision making, and communication within an organization.
- The military and manufacturing firms are examples of centrally managed organizations.
- In political science, centralization refers to the concentration of a government's power, both geographically and politically, into a centralized government.
- In neuroscience, centralization refers to the evolutionary trend of the nervous system to be partitioned into a central nervous system and peripheral nervous system.
- Centralized organizations typically require that communications flow through a central person or location.
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- A nation's money supply is determined by the monetary policy actions of its central bank.
- A nation's money supply is determined by the monetary policy actions of its central bank.
- Commercial banks, as required by the central bank, must keep a fraction of all accepted deposits on reserve either in bank vaults or in central bank deposits.
- Under fractional reserve banking, a nation's central bank is responsible for holding a certain fraction of all deposits as cash or on account with the central bank.
- Clockwise from top-left: Federal Reserve, Bank of England, European Central Bank, Bank of Canada.
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- There are two communication models that are utilized—centralized and decentralized.
- Centralized organizations require communications flow through a central person or location.
- One disadvantage to centralized communication is that as the organization grows, the amount of information can overwhelm the central hub (person or department) that processes this information.
- One advantage to the centralized approach is that it encourages standardized processes that typically result in cost savings and better quality control.
- So how does an owner begin to digest and pick between all the choices (function, product, process, project or matrix structure, flat versus tall, centralized versus decentralized) available when it comes to organizing a business?
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- The Federal Reserve System is the central banking system of the United States, which conducts the nation's monetary policy.
- The Federal Reserve System (also known as the Federal Reserve, or the "Fed") is the central banking system of the United States.
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- Open market operations (OMO) refer to a central bank's selling or buying of government bonds on the open market.
- An open market operation (also known as OMO) is an activity by a central bank (in the U.S. it is the Fed) to buy or sell government bonds on the open market.
- A central bank uses them as the primary means of implementing monetary policy.
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- As a result of this, the business owner is a central source of advantage (or potentially disadvantage) when executing the operations of the organization.
- Simply put, the success or failure of a small organization is inherently tied to the central figure who starts, organizes, and manages it.
- Without getting too specific or detailed, there are a few central skills commonly required of owners across most small businesses:
- Leadership of a team to create synergy and ensure alignment is also of central importance and by default the responsibility of the owner.
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- For example, if a country is importing more than it exports, its trade balance will be in deficit, but the shortfall will have to be counter-balanced in other ways – such as by funds earned from its foreign investments, by running down central bank reserves, or by receiving loans from other countries.
- While the overall BOP accounts will always balance when all types of payments are included, imbalances are possible on individual elements of the BOP, such as the current account, the capital account excluding the central bank's reserve account, or the sum of the two.
- Then the net change per year in the central bank's foreign exchange reserves is sometimes called the balance of payments surplus or deficit.
- The central bank does not intervene with a pure float to protect or devalue its currency, it allows the rate to be set by the market.
- The central bank's foreign exchange reserves do not change.
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- Other reasons why banks might suddenly stop or slow lending activity: An anticipated decline in the value of the collateral used by the banks to secure the loans; an exogenous change in monetary conditions (for example, where the central bank suddenly and unexpectedly raises reserve requirements or imposes new regulatory constraints on lending); the central government imposing direct credit controls on the banking system; or even an increased perception of risk regarding the solvency of other banks within the banking system.
- Banks lend not directly to each other, but to the central bank and, on the other side, borrow not directly from each other, but from the central bank.
- Other causes can include an anticipated decline in the value of the collateral used by the banks to secure the loans; an exogenous change in monetary conditions (for example, where the central bank suddenly and unexpectedly raises reserve requirements or imposes new regulatory constraints on lending); the central government imposing direct credit controls on the banking system; or even an increased perception of risk regarding the solvency of other banks within the banking system.
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- Important institutions of the EU include the European Commission, the Council of the European Union, the European Council, the Court of Justice of the European Union, and the European Central Bank.
- The euro and the monetary policies of those who have adopted it in agreement with the EU are under the control of the European Central Bank (ECB).
- The ECB is the central bank for the eurozone, and thus controls monetary policy in that area with an agenda to maintain price stability.
- It is at the center of the European System of Central Banks, which comprises all EU national central banks and is controlled by its General Council, consisting of the President of the ECB, who is appointed by the European Council, the Vice-President of the ECB, and the governors of the national central banks of all 27 EU member states.
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- With respect to customer evaluations, we distinguish between central-location tests and home-use tests (Crask, Fox and Stout 1995).
- Here, we distinguish between two types of customer evaluations: central-location evaluation and home-use evaluation.
- Central-location tests are conducted at designated locations such as shopping malls, sporting events, and college campuses.
- Types of central-location tests include:
- The home use test is usually more expensive than the central-location evaluation, but it is more realistic.