Central Bank

Central Bank
Moscow International Higher Business School "MIRBIS"
(Institute)
Foreign Language Department
Abstract
Of the Diploma Paper
"The Central Banking"
Student: Fomi Language Consultant: Irina A. Zhavoronkova
Moscow 2011
Subject Matter of the Study
The subject of the paper is the review of basic terms of Central Bank, it's monetary policy and issues
facing Central Banks. The evolution of central banks as key players in economic affairs has a
colorful history embodying over two centuries of economic and political thought. Central bank
supervises and regulated the banking system ... Show more content on Helpwriting.net ...
In the latter case, local currency is directly backed by the central bank 's holdings of a foreign
currency in a fixed–ratio; this mechanism is used, notably, in Bulgaria, Hong Kong and Estonia. In
countries with fiat money, monetary policy may be used as a shorthand form for the interest rate
targets and other active measures undertaken by the monetary authority.
The nature and structure of central bank ownership is of interest because of the actual or perceived
level of political influence it may afford the government over the conduct of monetary policy.
Central banks in many countries are state–owned institutions and operate under legislation similar to
that of other government bodies.
Central banking can be a very profitable business and therefore ownership can reap considerable
economic rent. Profits from functions and activities of central banks, such as seignior age, open
market operations, and fees, are distributed in accordance with ownership structure. In the case of
state–owned central banks, profits go to the state based on a formula or budget, or to the Finance
Minister or the Treasury. This is even true for the Fed, for despite the appearance of private
ownership, on average 95% of the Fed's considerable profit, goes to the US Treasury.
Central banks have a long history of adaptation that continues today with vigorous debate over
fundamental issues like,
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Essay On Central America
Sandwiched between the two pieces of lands, Central America is a region made up of attractive
coral beaches, rocky elevated mountains, and interesting green rainforests. Its partner, the
Caribbean, lies on the region's eastern side and comprises of similar features. Overall, these unique
characteristics has made the region suitable for growing variety types of agriculture. These
landscapes has also shaped the climate and seasons. What's more, these beautiful geographical
features created rich culture and unforgettable history in the area.
Physical Features
Central America is an isthmus, connecting the two separate land to form a continent. It is made up of
seven countries: Belize, Guatemala, Honduras, El Salvador, Nicaragua, Costa Rica and ... Show
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This is because the location of the region (the explorers who traveled from Europe towards the west
landed on the Caribbean) and the geographic images has successfully attracted many people seeking
to find a place to live in. The Maya built large cities with pyramids and temples between AD 250
and 900, which leaves to the present day with the abandoned ancient cities. When the explorers from
Europe arrived to this part of the world, they just would not leave; they were too engrossed to settle
in this pleasant region. The attractions by the physical features had contributed further to establish a
society in this area as the people decided to live there will shape the history and culture

The Government And The Central Bank
Canada's GDP is increasing and the unemployment is decreasing. And so, a cursory glance may
suggest the country is performing well. However, in order to understand how successful the
Government and the Central Bank's efforts to ameliorate the economic situation have been we need
to look beyond the narrow scope of two years set out by the essay title. As the world is more global
now than before and Canada's economy is export–based we have to wider our looks outside of
Canada to understand whether their actions are reasonable made. Therefor I will in this essay
compare Canada with other countries which also have large natural resource reserves, such as
Russia and Norway. To understand the acts of the Canadian government and the ... Show more
content on Helpwriting.net ...
Canada is a developed country with large natural resource reserves. Trade statistics from recent
years shows that the value of natural resource exports accounts for more than half of Canada's
merchandise exports. The United States, China and The United Kingdom are Canada's most
important trade partners and where more than 80% of the merchandised exports are destined
(International.gc.ca, 2015) However, unlike other nations with large natural resource reserves
Canada's economy is not solely dependent on natural resources. According to the (Nrcan.gc.ca,
2013) Government of Canada's calculations the energy sector directly account for only 7% of the
GDP and other important sectors are: Car industry, Happenings before 2013 In 2007 – 2008 the
world was struck by a financial crisis which lead the Eurozone into a debt crisis. Tom Worstall
(2014) is reporting on Forbes that the Nobel prize award winner Ben Bernanke has revealed the
financial crisis to have been even worse than the great depression in 1929 (The Economist, 2014).
Many countries are still facing issues like deflation and slow growth (Knowledge@Wharton 2015).
However, Canada got through the financial crisis less damaged than other countries and has since
been able to present GDP growth and decreasing unemployment. (Haltom, 2015; IHS, 2015)
Monetary and Fiscal Policy Macroeconomic policy in Canada is set out in its monetary and fiscal
policy. Fiscal policy attempts to control the actions the

Olmsted And Veaux Central Park Summary
Frederick Law Olmsted and Calvert Vaux's choices in the design of Central Park reflect a key
movement toward sustainability. In leiu of ornate structures prefered by the upper class, Olmsted
and Vaux chose designs that would encourage people from all classes to enjoy the park. Olmsted and
Vaux selected plants and additional fixtures in the park by considering ecological implications. One
of the main goals during the creation of Central Park was to provide a serene space for city dwellers
to go and escape the troubles of urban life. Olmsted and Vaux promoted sustainability in the design
of Central Park by maintaining class equality, making environmentally sound decisions, and
supporting the needs of the surrounding community.
Back during the ... Show more content on Helpwriting.net ...
Numerous films have set Central Park as the backdrop of their stories not because of glitz and
glamor, but because of the coordination of all things so ordinary they don't distract from the story
and the presentation of something so extraordinary the audience feels an air of joy and importance
without realizing the genius of Central Park's simplicity. Plenty of iconic pieces of Americana like
farming, mainstream jazz, and the white picket fence have come and gone but the sustainability of
Central Park's display of equality, care in environmentally based effects on ambiance, and protection
of parkgoers' emotional wellbeing will surely stand the test of time for many years to

Essay on Tools of The Central Banks
Interest rates are a tool that central banks use to implement monetary policy. They represent the
percentage rate at which interest is paid by a borrower for the privilege of using money that has been
lent to them and the interest can be paid at various time intervals. Higher interest rates will have an
impact upon inflation and employment and could lead to a reduction in consumer spending and
investment. The Bank of England meets every month to set the UK bank rate. There are nine
members of the Committee and they are appraised of all the latest data on the economy and business
conditions. Their task is to keep inflation below 2% but above 1% in the following 2 years.
In the UK the current rate of interest, also known as the base rate, ... Show more content on
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Charlie Bean has suggested that any rises are in "baby steps" in order to avoid making mistakes. In
other words he thinks the Bank should be cautious – this could entail raising rates soon – but at a
smaller rate than has been implemented in the past, for instance at a rate of increase of 0.1% instead
of the previous normal rate of 0.25%.
It is generally accepted that low interest rates are inflationary and the Bank will be watching for
early signs that this is happening and try to move interest rates up early to forestall it. Generally they
would raise interest rates if they were concerned that inflation was on the increase in order to reduce
demand and slow the rate of economic growth. At the present time there are no signs that inflation is
picking up with the latest CPI figure coming in at 1.8% which may be attributable to the output gap.
Interest rate movements have the largest impact for individuals on savings, mortgages and annuities,
whilst for businesses it impacts the level of demand, interest on loans and the present value of assets
and liabilities.
Over the last 5 years savers have been badly hit by the low level of interest rates. This has been
particularly hard for pensioners with savings. Higher interest rates would make it more attractive to
save cash in deposit accounts as the level of interest received would be higher than at present, thus
reducing the need to take on extra risk to

Central Bank in Turkey
MONETARY POLICY IN 2002
(Updated and revised as of July 2002)
August 2002
CENTRAL BANK OF TURKEY
1
Outline of Presentation
Monetary Policy Framework – Exchange Rate Regime
Monetary Policy Strategies
Assumptions, Communication – Accountability, Transparency, Interest
Rates Policies, Monetary Targets, Inflation Targeting
Current Situation and Expectations in Economy
Stability Indicators, Price Stability and Growth, Balance of Payments,
Monetary Targets
Price Developments
January – June developments, price movements in the future
Outlook for Exchange Rate Policy
Outlok for TL Policy
2
Monetary Policy Framework
Exchange Rate Regime
Characteristics of the 2000 Monetary Policy and
Exchange Rate Regime
 It ... Show more content on Helpwriting.net ...
To ensure accountability, the CBT provides information to the public, to the Parliament and to the
Government periodically regarding monetary policy implementation.
8

Monetary Policy Strategy – Transparency
Increasing transparency makes monetary policy more predictable, more effective and more credible
in order to attain the final objective. Expectations become more sensitive to the Central
Bank's decisions.
 Political transparency: Clear–cut goals; inflation targets,
 Transparency in monetary policy: Written announcements such as change in short–term interest
rates,
 Operational transparency: Openness in interventions in markets and policies,
 Economic transparency: Quarterly Monetary Policy Reports,
Annual Report, Auditing Reports, which evaluates past performances and future expectations.
9
Monetary Policy Strategy – Interest Rates
The CBRT takes its decisions by looking into the future inflation within the framework of its
fundamental objective of achieving price stability. To bring down risk premium and therefore real
interest rates, it is important to ensure that
1.
Priority is given to inflation targets and forecasts only,
2.
A sustainable economic growth and a rise in employment are secured. As in the past, targeting other
subjects such as balance of payments, exchange rates, gowth, public finance, banks will provide
mixed signals to economic agents. In this case, risk

Central America Research Paper
Objective You will examine the physical environment of Central America. Introduction Central
America is a tropical zone with a wide range of climates, vegetation, and agriculture products. In
this lesson you will learn about these climates, what vegetation grows naturally in the climates, and
what agricultural products the people of Central America grow. Physical Environment Central
America connects North and South America as a land bridge. The Pacific Ocean and the Caribbean
Sea border to the west and east. Mountains run all through the region. Many of these mountain
ranges contain volcanoes, some active and some dormant. The isthmus of Panama is incredibly
narrow. If you were to climb to the highest point in Panama, you could see both ... Show more
Each country has its main export. Main exports of this region include bananas, tropical fruits, rice,
coffee, corn, and sugarcane. Corn was established as the earliest crop of Central America. It was a
major part of their life before the Europeans arrived. Other crops during this time, and current time,
include squash, beans, and chili peppers. These crops were often traded within villages or other
villages for materials that each other needed as well as to help sustain others. Nonfood crops such as
cotton and tobacco were and still are vital parts of agriculture in Central America. Both crops are
grown for personal use and trading. Crops like bananas, coffee, and sugarcane are the main export
crops today. Bananas are mainly grown in Honduras and the Caribbean. Honduras is a leading
exporter for bananas in the world. Coffee is grown in every country of Central America. Coffee
takes as much as two months to harvest because of its slow ripening time. Sugarcane, like coffee, is
widely grown. Sugarcane takes very little time to manage during the growing time, however that
changes when it comes time to harvest. The harvesting of sugarcane is incredibly

The Central Bank or The Fed
The Central Bank in the world today is a key part in the role of an economy to operate efficiently
and effectively. Central banks began operating in the United States in 1914. The Central Bank is
commonly referred to as "The Fed.," which performs various functions that have developed over the
years. These functions play a huge importance in the operation of our economy.
The Central Bank
The central bank is a financial institution that organizes the government's finances, controls money
and credit of the economy and assists as the bank to commercial banks. The roles of the central
banks are to create money and develop Monetary Policies. Monetary Policy can be used to give
assistance in the way an economy is currently operating in. Monetary ... Show more content on
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Evaluation of the Central Banks
The Central banks in the 1600's performed mainly one function, to act as the government's bank.
This function particularly was used to finance wars. An example, such as, King William of Orange
utilized the central bank to finance his wars. Other rulers utilized the central bank to stabilize the
economy and financial system. Our famous legendary warriors lead the central banks to become
more regulated. Today, the central bank is highly regulated by the government. Also, today nearly
every country in the world functions with a central bank system. As the importance of a stable
economy and reliable government grows, there has been more of a need for central banks; especially
among developing countries. Since times have changed, the central banks are no longer seen as a
way to finance wares. Today, when a country is under tough hardship between other countries, the
central banks can be affected. An article that perfectly describes this issue is stated on Reuters.
Recently, Russia has been flooding the news with its action of invading Ukraine. This has caused
major macroeconomic problems for Ukraine, such as, the destabilizing of the Ukraine banks. The
article states, "Moscow has raised its prices it charges Kiev for gas by 80%." (Yukhananov, 2014)
This has caused Ukraine "to receive a two–year, $14 billion loan package in exchange for
implementing tough economic

The Central Park Five Summary
Media Coverage in Law: The Central Park Verdict Ken Burn's The Central Park Five depicts the
story of five young innocent men of color from Harlem and their interaction with the law and the
legal system. It specifically focuses on the Central Park jogger case consisting of the beating and
rape of Trisha Meili, a twenty–eight year old woman from the Upper East Side who worked on Wall
Street. Antron McCray, Kevin Richardson, Yusef Salaam, Raymond Santana, and Korey Wise were
ultimately found guilty and served six to thirteen years in prison. Although, that night, the worst
crime committed by these fourteen to sixteen year old boys was hopping a turnstile. After a group
consisting of twenty–five teenagers including the five young men attacked pedestrians in Central
Park, the boys were detained for unlawful assembly by New York City police officers. Because the
boys were detained around the same time the jogger was found, a different detective told the station
to hold them, as if they were accountable for the crime. The police changed their demeanors
immediately, becoming more furious with the boys when their statements did not include the
woman. Their goal was then to break them down to a state of despair so they would start to look for
a way out, resulting in yelling in their faces, poking their chests, targeting them without their
parents, threatening time served, giving false information on evidence, and making them cry. After
fourteen to thirty hours in custody, the

The Importance Of A Central Office That Supports District...
Module 6 Discussion
Discuss the make–up of your central office and the ways roles are delegated in order to have a
smooth running central office that supports district mission and vision.
Our collective mission is 'to nurture and educate our children in accordance with all curriculum
standards to prepare them for responsible citizenship and success in life'. The district's strategic plan
was created with the community after holding several meetings with a variety of stakeholders and
demonstrates the community's values as well as integrating 21st century skills into the classroom so
students can succeed in a global economy. This was the first time our district included the
community in planning and the Superintendent and Director of Curriculum were new so it was a
positive change. I remember the notices we received via email encouraging teachers to attend,
however, many did not because our previous administration was very bold about punishing those
that did not agree with them. Over the past few years, the new central office team has worked hard
in trying to build trust by forming committees, email communications, and surveys that are directly
related to our goals. According to the article, "a transformation strategy is fundamentally about
remaking what the people in central offices do– their daily work and relationships with school," (p.
VI).
After interviewing many central office personnel, I can conclude that the central office in my district
follows a hierarchy as

Monetary Policy Of A Central Bank
Several authors including Bade and Park (1982), Alesina (1988,1989), and Grilli, Masciandaro and
Tabellini (1991) found that more central banks are independent it would result in lower level of
inflation. As Rogoff (1985) notes, dynamic inconsistency theories of inflation of the type developed
in Kydland and Prescott (1977) and Barro and Gordon (1983) make it reasonable that more
independent central banks will reduce the rate of inflation as delegating monetary policy to an agent
whose preferences are more inflation averse than the societies preferences would serve as a
commitment that allows sustaining a lower level of inflation. Insulating monetary policy from the
political process helps enforce the low inflation equilibrium. Without ... Show more content on
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Fed has been designed in such a way that it is separate from different kind of branches of
government as it is a self–financed institution. The tenure of the seven board of directors span
almost double than presidential and congressional term as it last for 14 years which actually
promotes consistency and helps in carrying out the functions in a smooth manner. It was made clear
in Maastricht treaty that ECB would be independent from any political pressures and it was made
sure that enough powers are given to them that they can easily sustain any kind of pressure and can
maintain their image of being independent. That 's why ECB activities and operations are kept
separate from the interest of the Euro area. ECB has its own budget and it is paid by the national
banks of the Euro area. The members of the executive members are given powers in order to
minimize political influence, this is done by giving them long tenures to serve and they cannot be
reappointed on that position which helps them to focus on implementing their policies with full
force. ECB has all the powers and tools to carry out its monetary policy effectively and is given a
free hand in deciding when to use different types of tools to stimulate its functions. . Bank of Japan
revised its laws in order to also go towards greater independence, the new law aims to give BoJ
autonomy regarding currency and monetary control. In order to establish this, the members of policy
makers can be

Are Central Banks Acting A Collusion?
Are Central Banks Acting in Collusion?
During the past 40 years, there have been three great dollar bull markets (1980–1985, 1995–2001
and 2011–2015). The first period of dollar strength helped to usher in a period of so–called
international policy coordination, commencing with the Plaza Accord (1985). The aim of the
agreement was to drive down the value of the US dollar versus the yen and deutschmark at the
behest of the Reagan Administration. Both Germany and Japan consequently agreed to embrace
policies that would drive their respective currencies sharply higher. The results were disastrous:
Japan experienced its now infamous economic and stock market bubble, while Germany eventually
had a transatlantic spat over monetary policy conduct that sowed the conditions for Black Monday
in October 1987. International policy co–ordination was subsequently deemed to be no longer
appropriate, with the notable exception being the cooperation that followed the global financial
crisis. The onset of the Great Currency War appeared to confirm the view that central banks would
conduct policy that best serves national interests. This doctrine has, therefore, driven the European
Central Bank (ECB) and Bank of Japan (BoJ) to embrace aggressive and daring forms of
quantitative easing, as well as negative interest rates. Against this backdrop, the Fed had deemed
that ultra–accommodative policy settings were no longer deemed necessary, thereby providing
support for the dollar's most recent

Describe The Balanceet Of The Central Bank
i) Describe the balance sheet of the central bank making clear the composition of its assets and
liabilities.
The central bank is used to engage in the numerous financial transactions it deals with daily. It can
supply currency, provide deposit accounts to the government and commercial banks, make loans,
and buy and sell securities and foreign currency. As a result, this causes changes to the central bank's
balance sheet. The central bank's balance sheet shows three basic assets, which are securities,
foreign exchange reserves, and loans. The securities and foreign exchange reserves are needed so
the central bank can perform its role as being the government's bank. While the loans are a service
to the commercial banks. Before the ... Show more content on Helpwriting.net ...
Discounted loans are loans that the Federal Reserve makes when a commercial bank needs short–
term cash. However, there are several different types of loans that can be issued, and there are times
when the Federal Reserve will issue loans to nonbanks. For example, during 2008 and 2009 the
Federal Reserve had made substantial loans to nonbanks because of the financial crisis.
The central bank's liabilities are also seen in three different forms which are: currency, government
deposit accounts, and deposit accounts of the commercial bank. These can also be divided into
different groups based on their purpose. The currency and government deposit accounts allow the
central bank to perform its role as the government's bank. Currency is used in daily transaction
everywhere, and since it circulates in the hands of the nonbanking public, it is the principal liability
of most central banks. Government accounts are used as a place to deposit the income and used to
pay for the things they buy, it is nearly similar to what people need a deposit account for. The central
bank provides the government an account to deposit their funds, and they can shift their funds
between accounts at commercial banks and the Federal Reserve. Lastly, is the commercial accounts
and contains two parts: one is the deposits at the central bank and the cash in the bank's own vault.
The bank can withdrawal funds from the central bank, and the commercial bank can wire portions of
a deposit accounts

The Central Bank Of Australia
The Central Bank
The Reserve Bank of Australia (RBA) located in Sidney, South Wales, Australia, is the Central Bank
of Australia. All the responsibility that this bank has over the country comes from the Reserve Bank
Act 1959. The duty to contribute for the stability of their currency, maintain full employment and
the economic prosperity with the welfare of Australian people. Using strategies as setting cash rate
to settle the medium term of inflation target, managing to control a strong financial system and
productive payment system, and last but not least issuing bank's notes.
On the other hand, the Central Bank delivers banking services to overseas central banks and others
institutions. Also managed the gold and the exchange ... Show more content on Helpwriting.net ...
APRA also issues capital adequacy for banks that are reliable with the Basel II rules. APRA also
requires all of the institutions that they regulate to report a periodic basis.
ASIC relays in market integrity, consumer protection, and regulation on financial institutions like
investment banks or finance companies. However, ASIC does not investigate concerns about the
consumer protection, its delegated to the Australian Competition and Consumer Commission
(ACCC). To sum up, banks are also obligated to follow the Anti money Laundering and Counter
Terrorism Financing Act 2006. It is required to monitor every customer using the risk–based
approach, which is a program from the Australian Transaction Reports and Analysis Centre
(AUSTRAC) to identify any suspicious activities in any account and also to file an annual report for
the records.
Commercial Banks Operating in the country
National Australia Bank Group (NAB) is one of the four top banks in Australia. This bank has about
40,000 members and 1,700 branches globally. The income statement below shows the amounts in
US Australian dollars from last year (2014). For further information about their balance sheet see
appendix figure 1.
Commonwealth bank: also in the top four banks of Australia with branches across the world such
Asia, New Zealand, North America etc. This Bank offers life insurance, retirement income and
general insurance. Is one of the

The Main Functions Of The Central Bank
Central bank is a government created institution which has a very powerful impact by its behaviour
on the economy of a country, this includes financial firms as it uses economic tools like credit
policies and restriction and supply of money. The central bank of a country would have more impact
on the day to day activities of financial services providers, including revenue and cost than any other
institution in an economy. The primary function of the central bank is to make changes according to
the situation in the market, this would involve supply and cost of money and credit to the financial
system, which would directly or indirectly contribute to the nation's growth and goal.
(CHAPTER 2 THE IMPACT OF GOVERNMENT POLICY AND REGULAITON OPN THE
FINANCIAL SERVICE INDUSTRY)
The main functions of the central bank are that it controls the issue of legal tender and it has
monopoly over it, thus in a way also has the control over the supply of money in the economy. As
the central bank is the banker's bank it has control over both the banking and the non–banking
financial institutions. It is the government's bank and performs traditional banking operations,
lending and deposit taking for the government it has enough capacity to manage and administer the
country's national test. The central bank acts as the mediator and regulation with regard to the
foreign exchange and gold reserve. The central bank plays a very important role in order to maintain
and stabilize the price level and

Central Bank Of Indonesi Indonesia
Part 2: Indonesia
Transition
Indonesia in the fall of 2014 is in a recessionary phase. The GDP dropped from 6.48 in 2011 to a
5.78 in 2013. In addition to that, unemployment has increased from a 5.31 percent in 2011 to a 6.41
percent in 2013. This recession could be caused in part by the high rate of poverty in Indonesia.
Currently about 24% of Indonesia's population lives under the poverty line. The severity of this
issue is reflected in the widening gap between the rich and the poor in Indonesia. There are two
potential tools that can be used to pull Indonesia out of a recession: monetary policy is controlled by
the bank and fiscal policy is determined by the government.
Central Bank
The Central Bank of Indonesia, known simply as Bank Indonesia, was established in 1999 after the
financial crisis of 1998. It is fully autonomous in formulating and implementing each of its task and
authority as stipulated in the Central Bank Act (No. 23/1999) on Bank Indonesia which was enacted
on May 17, 1999. The Act clarifies the bank's position as an independent state institution and
freedom from interference by the Government or any other external parties.
The structure of the bank is such that as a public entity it has the power to issue policy rules and
regulations which are binding to the public at large. As a civil entity, the Bank Indonesia is able to
represent itself in and Outside the court of law. The Board of the Governors is a organization
responsible for formulating and

Coffee In Central America Research Paper
Coffee in Central America
Over time, the tradition of taking the highly lucrative cash crop of coffee has become universal to
the extent that its production is marred with interference from political, social, economic, and
scientific concepts that affect its production. In Central America, the major countries that produce
coffee include Costa Rica, El Salvador, Guatemala, Honduras, Mexico and Nicaragua. In these
countries, coffee is among the largest traded commodities. Normally, this production takes place
through small–scale farmers who are largely dependent on larger corporations to bridge the gap
between them and the consumers. Coffee production in Central America is affected by social,
economic, globalization and political factors that ... Show more content on Helpwriting.net ...
Sick explains this by stating that the farmers are forced to deal with mother nature problems whose
source is the continuing global warming that is getting worse by the day (194). Over the years, there
has been a lot of environmental degradation in Central America especially as evidenced with the
depletion of the tropical rain forests that attract rainfall. Consequently, the region has experienced
the creation of microclimates and weather conditions that are immensely unpredictable. The
consequence is a situation where the conditions do not support the growth of coffee and thus the
need for higher investments such as the use of

The Central Nervous System
The central nervous system is composed of our spinal cord and brain which consistently controls our
mind and behavior. The complexity of our brain is not entirely deciphered, but with extensive
scientific research it can be concluded that each specific section has its own specialized function. In
reference to eating pizza, socializing, and playing a game of cards, it can be deduced that our central
nervous system is always critically analyzing data using our Broca's area for speech, hippocampus
for memories, hypothalamus controlling internal body, and occipital lobe organizing visual stimuli.
The Broca's area lies within the frontal lobe of our brain. With the assistance of motor neurons, we
are able to comprehend language and control our speech when information is present. The flow of
sensory stimuli is evaluated, allowing this multiplex network to create a plan for communication.
When conversing with friends over a game of cards, your Broca's area will interpret the situation. If
you are being strategic, your brain may withhold certain information that may expose your unique
gaming tactics leaving you prone to losing. When you're engaged in a conversation with your peers,
the Broca's area then deciphers the language, allowing you to comprehend it so you understand what
is being said. The motor neurons are used for facial movements specifically in the mouth to produce
the desired speech. Since the Broca's area works specifically with our mouth and face, when you eat
a

The Uk Central Bank
Summary
It is known that the UK central bank has given more attention toward inflation rate than
unemployment rate. Due to the recession in year 2008, the quantitative easing has been implemented
and both inflation and unemployment rates target have been achieved. Recently, the Monetary
Policy Committee (MPC) has voted to maintain the interest rate at 0.5% to attain price stability and
to focus on maintaining inflation rather than unemployment. Contradictory, this has subsequently
led to a downward trend of the unemployment rate. The unemployment rate is not too high
compared to other countries but they are still an issue that needs to be acknowledge. The
government may tackle the issue by adjusting the target for inflation and unemployment that will
bring UK economy to its full potential.
Introduction
After the economic recession in 2008, the Bank of England(BoE)'s MPC had chosen to practice
quantitative easing (QE) in March 2009 which is lowering the bank rate to 0.5%. This form of
monetary policy is chosen as the solution by aiming price stability, economic growth and reach the
inflation target of 2% (Bank of England). According to the Office for National Statistics (ONS),
UK's current inflation rate, Consumer Prices Index (CPI) stands at –0.1% as at September 2015 and
the unemployment rate has decreased by 0.3% from (April–June 2015) to 5.3% (July–September
2015) while the employment rate, for those working at the age from 16 and 64 was 73.7% for July
to September

The Transition Of Central Bank
The last five years have been peculiar for the global economy, with recession looming around.
Consequently, the role of future monetary policymakers and the interpretation of the effects of the
policies have become desperately critical. In order to restore the ailing financial markets, central
banks have engaged in activities aimed at reducing the interest rates to zero and expanding the
balance sheets. The efforts have gone a long way toward preserving the financial markets and saving
the global economy from further depression. However, the actions carry long–term risks for central
banks and the economies. This paper will delve into the transition of central bank roles in the wake
of the recession.
Future of Central Banking
Central bank existence is justified by the role it plays in the economy. The Federal reserve bank of
America plays a dual mandate role as stipulated by the congress act introduced in 1977. Federal
Open Market Committee (FOMC) recent statements indicate the committee's commitment towards
the dual mandate. The committee believes that the solution to the recession that currently hits the
economy is its commitment to the dual mandate. However, its push towards achieving the dual
mandate is the cause of the slow pace recovery (Orphanides, 2014). For success in the future, central
banks should only focus on one target at a time. A more limited role of the central bank is
conditional for the economy to recover and grow from recession (Orphanides, 2014).

Central And South America Similarities
Although central and south America seem the same they are indeed very different. Central America
has more indigenous roots while south America has more European roots. Cultural practices are
vastly different. The geography difference is huge; they are two whole different continents. These
are some points that proof just how unlike the two continents are. Central American people have
more indigenous roots as comparison to south American people who have more European roots.
There is a language known as Portuguese that is widely spoken only in south America in brazil from
European settlers, which the country adopted. Central America has the most indigenous tribes
residing as comparison to south America. For example, like Guatemala proofing they

The Central Banks Of The World
The Central Banks of the world have a role in today's society to provide stability to the economy.
Through monetary policy, the Central Banks must utilize the daily economic data in order to make
policy decisions that attempt to ensure continuous growth and prosperity. The Central Banks do this
through regulating inflation as well as "implementing specific goals such as currency stability, low
inflation and full employment" (Heakal). In 2008 the global financial crisis hit numerous nations
around the world and each Central Bank saw their economies crash, consumers lose market
confidence, investors stop investing, and banks stop lending. If the money stops circulating in the
economy "banks [can't] provide customers with a variety of basic financial services; [such as] an
on–demand source of bank notes; deposits and savings accounts; payment services; and ... credit, to
both business and households" (Fisher 2). The credit crunch was experienced throughout the world
and each Central Bank laid out their plans in order to halt and begin recovering from the crisis and
set the economy back to a stable 2% inflation. Along with The Federal Reserve, the Bank of
England's conventional attempts at restoring the economy never had enough of an impact to jump
start the economy. An unconventional crisis called for unconventional resolutions. The Bank of
England turned to unconventional monetary policies when all else failed. The utilization of the
practice of quantitative easing and

Central America Case Study
Central America is a region where security threats are related to domestic issues rather than to state
actors. Its condition of bridge between the United States and the rest of Latin America makes it
particularly exposed to trafficking networks of drugs, weapons and human beings. In the last
century, a violent period of instability emerged due to the repression of communist insurgencies and
social unrest by military regimes associated with economic elites. After the end of this period, the
influence of the Armed Forces in the political life declined and the defense budgets were reduced,
under the perception that conventional wars were an unlikely scenario. Additionally, Costa Rica and
Panama had their military banned by law, to focus its resources in development and social needs.
However, the lack of conventional wars ... Show more content on Helpwriting.net ...
Timely arrival of rescue teams and medical supplies can affect significantly the casualties. Moving
relief goods and personnel between countries or within a country is the least politically sensitive and
controversial use of military assets, including aircraft. In the case of Central America, because of the
limited funding provided to the military, current airlift capability is composed in most of the cases
by scarce and limited platforms. The best aircraft is the C–130 of the Honduran Air Force, and
bigger aircraft are limited, additionally to their cost, by the capability of the airfields. A capability
congressional report evidenced the limitations in infrastructure to operate strategic airlift platforms
C–5 and C–17 in the region. Only Guatemala, Honduras, El Salvador and Panama each one with
had five or less airfields available. Besides, the main security priority will also need airlift as part of
its

Central Nervous System
Question 1
A. The components of the nervous system that are involved in physical sensation are Central
Nervous system and Peripheral Nervous System. "The Central Nervous System's role is to integrate,
process, and coordinate sensory and motor commands" (Bartholomew). CNS controls only the
spinal cord and the brain. The PNS controls the nervous system outside the spinal cord. The function
of PNS is to send "sensory division to the central nervous system to be process" (Bartholomew).
B. Sensory impulse moves throughout the body through two pathways, afferent fiber (axon to the
CNS) and efferent fibers (away from CNS). When there are internal (visceral sensory) or external
(somatic sensory) changes occurring to the body the sensory receptor information ... Show more
The action that is required for standing up is for the muscle to contract in the lower portion of the
body from the gluteus maximum to the Gastrocnemius muscle.
Question 4
A. The different levels of organization of muscle are "muscle, fascicles, muscle fiber, Myofibril, and
thick and thin myofilament" (Bartholomew).
B. Sarcomere is a form of "repeating pattern of units along each muscle fiber" (Bartholomew) that
contain thick, thin, zone, line, and bands. The sarcomere's protein is organized from the smallest
muscle units.
Question 5
A. Muscle contractions start when stored calcium ions are released into the cytosol. The receptor is
bound to the end plate, sending an electrical signal to activate the contraction. The signal will travel
to the sarcolemma in the tubule causing calcium ion to release at the point where sarcoplasmic
reticulum (SR) and the T tubule meet.
B. The contractions end when ACH are broken down, which causes the stimulation to slow down.
This happens when the calcium is transported back into the SR.
Question 6
A. Kath's medical problems related to her sensory and motor neurons because she felt "tingling,
numb sensation" (Brown worksheet), a sensory sensation which caused her to not be able to stand
(motor neurons).
Part II
Question

Central Park Essay
Central Park
Central Park was the first landscaped public park in the United States. Advocates of creating the
park – primarily wealthy merchants and landowners – admired the public grounds of London and
Paris and urged that New York needed a comparable facility to establish its international reputation.
A public park, they argued, would offer their own families an attractive setting for carriage rides and
provide working–class New Yorkers with a healthy alternative to the saloon. After three years of
debate over the park site and cost, in 1853 the state legislature authorized the City of New York to
use the power of eminent domain to acquire more than 700 acres of land in the center of Manhattan.
An irregular terrain of swamps ... Show more content on Helpwriting.net ...
After a new city charter in 1870 restored the park to local control, the mayor appointed park
commissioners. In 1857, the Central Park Commission held the country's first landscape design
contest and selected the "Greensward Plan," submitted by Frederick Law Olmsted, the park's
superintendent at the time, and Calvert Vaux, an English–born architect and former partner of the
popular landscape gardener, Andrew Jackson Downing. The designers sought to create a pastoral
landscape in the English romantic tradition. Open rolling meadows contrasted with the picturesque
effects of the Ramble and the more formal dress grounds of the Mall (Promenade) and Bethesda
Terrace. In order to maintain a feeling of uninterrupted expanse, Olmsted and Vaux sank four
Transverse Roads eight feet below the park's surface to carry cross–town traffic. Responding to
pressure from local critics, the designers also revised their plan's circulation system to separate
carriage drives, pedestrian walks, and equestrian paths. Vaux, assisted by Jacob Wrey Mould,
designed more than forty bridges to eliminate grade crossings between the different routes. The
building of Central Park was one of nineteenth–century New York's most massive public works
projects. Some 20,000 workers – Yankee engineers, Irish laborers, German gardeners, and native–
born stonecutters – reshaped the site's topography to create the pastoral landscape. After blasting out
rocky

Central Bank Of The United States
The Federal Reserve is the central bank of the United States, its structure combines centralization
with regional authority: including a Board of Governors in Washington D.C., a Federal Government
Agency, and twelve regional Reserve Banks. One branch in particular, the Federal Open Market
Committee, made of twelve Federal officials, is committed to fulfilling its ordinance from congress
to promote maximum employment, maintain stable prices, and moderate long–term interest rates.
According to the Federal Reserve System online, "The Federal Reserve, the central bank of the
United States, provides the nation with a safe, flexible, and stable monetary and financial system."
In order to do this, the Fed meets every six weeks to consider changes in interest rates, and may
have an unscheduled meeting at any time in between. The Fed's responsibilities rest in four
categories: monetary policy, financial intermediation through emergency liquidity (as the lender of
last resort), supervision of certain types of banks and other financial firms, and establishment of
payment system services to financial firms and the government. The primary method of monetary
policy is through open market operations and involves the purchase of existing U.S Treasury
securities. Through this type of purchase, the Fed increases the reserve base and thereby facilitates
the ability of depository institutions, banks, to make loans and expand money and or credit. The Fed
traditionally conducts these open

The Central Nervous System
Famous astrophysicist Neil deGrasse Tyson once said, "Everything we do, every thought we've ever
had, is produced by the human brain. But exactly how it operates remains one of the biggest
unsolved mysteries, and it seems the more we probe its secrets, the more surprises we find"
(BrainyQuote). The brain is like a galaxy. There is general knowledge of the universe; however, new
secrets of planets, moons, and stars are discovered on a daily basis. Similarly, scientists know the
basic structure and functions of the brain, but new aspects of the brain are revealed everyday.
The brain is part of the central nervous system (CNS). Its role is to receive signals, decode the
signals, and send response signals down the spinal cord to the rest of the body. Signals are received
from different parts of the brain depending on which sensory organs receive stimuli (Carter, Gray
697). Once sensory organs receive stimuli, stimuli are transmitted to sensory memories, which are
"physiological parts of the nervous system" [that directly sensors to the brain] (Kinster, Grobstein).
Sensory memories then pass selected stimuli to hippocampus in the forebrain, and the hippocampus
sends the integrated memory to neurons in the form of electrical impulses (Mohs). The human brain
is similar to the Congress in that thousands of bills are introduced in the Congress, but only a few
bills that are deemed to have significance move on to categorical committees. Resembling the
journey of bills,

The Role of the Central Bank
Role of A Central Bank as Lender of Last Resort
Introduction
Nowadays, monetary and central bank policy become more and more important. Besides, many
references are regularly made to the function of central bank as lender of last resort(LOLR). LOLR
contributes a lot to solve the financial crises. As central banks are independent from government,
they seem to have strong priorities. In modern society, with the growth of the global economy,
central banks have been playing especially important roles in finance systems of modern
society(Goodhart& Illing,2002) . The main responsibility of a central bank is to manage the
monetary policy in order to keep the economy as well as currency stable. Then, the central banks
can manage inflation ... Show more content on Helpwriting.net ...
A lender of last resort can not only protect depositors but also prevent withdrawal caused by
widespread panic. Thus, it can prevent the entire economy from being collapsing. Commercial
banks don't borrow from the lender of last resort ordinarily. Only when a financial crisis happen will
they use this life–saving straw. This phenomenon exits because if a institute borrows from a central
bank, it means a suffering from too much risk and financial difficulties(David, 2002).
In the United Kingdom, the role of LOLR is acted by the Bank of England. In the same way, this
role is undertaken by the Bank of Japan in Japan and by the Swiss National Bank in Switzerland.
Similarly, inRussia, the role of LOLR is played by the Central Bank of Russia.
When a financial institution is experiencing financial difficulties and is not able to fund money from
everywhere else, a central bank may be the one which will offer it an credit. The central banks' main
task is to protect the commercial banks from getting into a liquidity problem. It should protect the
individuals' funds as well. In addition, the central bank have the ability to keep the banks from over
withdraws in order to maintain their liquidity and remain stable. It is the central banks who have
been acting as lenders of last resort hence to avoid great

Central Bank : The Bank Of Canada
A Central Bank is a supreme bank in a country which supervises all the economic life of the nation.
As the definition states "Autonomous or semi–autonomous organization entrusted by a government
to, administer certain key monetary functions", these banks have a wide range of activities, such as;
implementing specific goals such as currency stability, low inflation rates and full employment.
Central banks acts as the banker of the government helping in regulating monetary and financial
stability, and developing stable payment system. The first central bank was found in the world was
the Swedish Riksbank, founded in 1668. Second bank was Bank of England found in 1964, by
William Paterson to finance a war. They became a vital part of the world today.
In Canada, central bank is the Bank of Canada. This bank wasn't as prominent part of the system in
the olden days. Before the Great Depression of the 1930's, there wasn't any importance of such
banks in Canada. Earlier the nation worked on the Canada's branch bank network which was
sufficient for the nation 's needs for almost a century. Central Bank of Canada (BOC) was found in
1934, but was initially opened in March 1935 at Wellington Street in Ottawa. In short time, one of
the bank's policies (Bank of Canada Act) were modified to nationalize the organization. BOC
converted into a Crown corporation in 1938, becoming a part of federal government. There were
many additional departments that were established, i.e.
Research

Effects Of The Mongols Of Central Asia
The Mongols of Central Asia, under the lead of Genghis Khan, encompassed China and Russia in
the thirteenth century C.E. Harsh conquest with massacre and destruction of infrastructure were
experienced by these regions. During Mongol rule, China was governed through the traditional
dynastic system while Russia was indirectly administered from the steppes with aid from local
princes. Although the pastoralists required tribute collection from both civilizations, only China
enjoyed significant economic flourish brought by the restoration of long–distance trade routes.
When the Mongols took over China, they moved the capital to Beijing to ease control. There, Kublai
Khan established the Yuan dynasty. He adopted the Mandate of Heaven as a way to

Americ Central American Gangs
Cody Hilton
October 1, 2016
Professor Liu
World Politics
Central American Gangs
The topic I chose to write about is Central American Gangs. Most of these gangs or problems that
we face with these gangs come from the Northern Triangle. The Northern Triangle is made up of
three countries, El Salvador, Guatemala and Honduras. Guatemala and Honduras currently being the
most dangerous out of the three. Many Countries have tried to intervene or help these countries but
attempts have proven to be of little use or no help.
The U.S. involvement with these countries began in 1951. Jacobo Árbenz was a military officer who
used his military forces to suppress laborers and take what he wanted. Hearing about this the current
U.S. President Eisenhower sent weapons to guerrilla groups in order to help over throw Árbenz.
Fast–forward a few years and the Cuban revolution happens and results in Cuba becoming a
communist government. Around this time many of the guerrilla groups started disappearing but still
remained intact. Most people who have an opinion on the matter agree that supplying arms and
providing aid to these extremist groups was the starting point to forming the current gangs in Central
America. "We made policy decisions that put short–term prioritization of winning battles against
insurgents and people we considered communists over the long–term stability of those countries,
they are now living the results." (Katel p.7). This quote sums up the idea the U.S had with their

The Care Of Central Lines
Care of Central lines
Sofia Yousuf
Northland Community & Technical College
Abstract
Central Lines are inserted for a number of clinical reasons including measurement of CVP,
Administration of IV drugs, IV fluids, Blood Draw for difficult to stick patients and some times for
nutritional reason (Administration of TPN). The main benefit of central line is for extremely sick
people multiple drugs/treatments can be administered simultaneously. The major disadvantages of
central lines, it can increase the risk of infection, pneumothorax, hemothorax, subclavian artery
puncture, Catheter misplacement, air embolism, thrombosis and malfunctioning. The aim of this
study is to discuss the methods adopted by hospitals to minimize ... Show more content on
Helpwriting.net ...
Subsequently, the author asked question about the use of face mask and they replied since dressing
change is a sterile technique, the face mask should be used during the dressing change. Also, the
author did some sort of verbal survey and requested the nurses to answer the questions honestly. The
question was how frequently the administration set should be changed when administering TPN,
blood/blood product, chemotherapy drug and propofol infusion. Among the eight nurses no one able
to answer properly. Everyone answered partially. The author found In ICU, the use of
chlorhexidine–impregnated sponge dressing for central line care is not clear to the nurses.
Policy
In Altru health system, the policy related to Central Line is easily available in all computers inside
the hospital. Nurses in Altru hospital are aware about the site where they can find the protocol
related to care of Central Line. The purpose of the hospital policy is to provide standardize
information to all individual for daily operational/maintenance activities of the central line. The
importance of policies is to provide uniform and accurate knowledge to its employees to have the
desired outcome for the organization. It helps employees to understand their roles and
responsibilities within the organization. Policies keep changing regularly in order to improve the
productivity and efficiency of the healthcare

Effects Of Slavery In Central America
During colonial times, Central America was a place of hostility and unequal treatment to many of its
indigenous people. War, starvation, cruelty, and death occurred occasionally due to the unfair
treatment of many poor citizens during this time. The worst part about it is that not one, but many
types of people and ethnic groups were subjugated to this mistreatment. Many groups such as the
Mayans,, the poor, and even ordinary citizens underwent hardships in hope to barely survive the
cruel world that they lived in. The exclusion of these people first began when Central America was
first colonized. Even during the beginning of colonization, Central American civilizations used the
unfair treatment of others to thrive in economic status. Slavery ... Show more content on
Helpwriting.net ...
At birth, many families struggled to keep their children alive until adulthood. The countries poverty
prevented people from feeding their children, leading to the malnutrition of thousands and the
negative health effects that come with it. But even after reaching maturity the lives of people remain
a struggle. Many women are forced to raise their children alone while struggling to provide a living
for themselves and their offspring. Lack of education in Central America prevent men and women
from finding work, making survival very difficult. Death squads murdered thousands of innocent
lives in brutal ways. The human rights movement CO–MADRES was started to call out against the
extreme lack of civil liberties. Other groups like the FMLN and the FPL fought against the
government to stop the social injustices the Salvadorian government committed. The government
needed to help eliminate the massive problem of poverty. But because it did not, guerrilla groups
were formed by El Salvador's people in hope to change what the government could not. By forming
death squads in an attempt to stop those groups, the countries situation led only to more death and

The Central Bank Of Jamaica
The two financial institutions that will be compared and contrast are the European Central (ECB),
and the central bank of Jamaica, the Bank of Jamaica (BOJ). Being a native of Jamaica, I will start
off with some background information on the BOJ. The Bank of Jamaica, established by the Bank of
Jamaica Law (1960), began operations in May 1961. The establishment of the Central Bank was in
recognition of the need for an appropriately regulated financial structure to encourage the
development process, particularly as Jamaica was about to embark on the road to political
independence. The main objectives of the Central Bank were defined by the Bank of Jamaica Act to
be:
To issue and redeem notes and coins.
To keep and administer the ... Show more content on Helpwriting.net ...
This is because it is the best contribution monetary policy can make to economic growth and job
creation. The European Central Bank is responsible for the prudential supervision of credit
institutions located in the euro area and participating non–euro area Member States, within the
Single Supervisory Mechanism, which also comprises the national competent authorities. It thereby
contributes to the safety and soundness of the banking system and the stability of the financial
system within the EU and each participating Member State (European Central Bank). The Euro–
system consists of the following set of instruments:
Open market operations,
Standing facilities,
Minimum reserve requirements for credit institutions. Our focus is on the Open market operations
and the minimum reserve requirements for credit institutions. Currently, the Bank of Jamaica uses
the following monetary policy tools:
Indirect Policy Tools: Open market operations
Direct Policy Tools: Reserve requirements Open market operations play an important role in
steering interest rates, managing the liquidity situation in the market and signaling the monetary
policy stance. Open market operations are initiated by the ECB, which decides on the instrument
and the terms and conditions. It is possible to execute open market operations on the basis of
standard tenders, quick tenders or bilateral procedures. Open market operations can differ in terms
of aim,

Central African Republic
You cannot have peace without security and you cannot have effective security without peace. In
August of this year, there was an estimate of 400 bodies that were collected across Bangui, the
capital of the Central African Republic. This number was acquired in just three days and it served as
a huge wake up call for the Central Africans. However, it was not long before another revolt that left
twelve people dead, thirty people wounded, and children were not spared. Meanwhile in Denmark,
reports are showing that they are stressing the protections of civil rights and humane treatment. For
this reason, the county of Denmark is at an all time low of violence and misconducts. The Central
African Republic separated itself from Boganda in December of 1958. However, all went wrong
when Bokassa was elected president and eventually president for life in 1968. Denmark on the other
hand went through a terrible slump when under German control. Innocent Danish people were
arrested during World War II. In reaction to how poorly their people were treated, the Danish
government designed a liberal system for all citizens, including inmates. According to Dr. Robert
Winslow, the final revisions were made in 2001 and today the country of Denmark leads Europe as
far as well–designed security sectors. Obviously, the Central African Republic has a very
dysfunctional security sector however other countries around the globe such as Denmark have never
been better.
The members of the

The Central Bank For The United States
Blah blah blah something about an article I find. The federal reserve in simple terms is the central
bank for the United States. In a more in depth description of the "the Fed" it is made up of the Board
of Governors. This board is made up of seven members, all selected by the President himself.
However, they also need to be confirmed by the Senate. This board is located in Washington D.C.
but has 12 regional banks around the country. Some of these places include San Francisco,
Philadelphia, Minneapolis, and nine other locations. These banks allow the Federal Reserve to
collect data on the current economy. Obtaining this information allows the Federal Reserve to gauge
the economy and create an appropriate monetary policy. Their main ... Show more content on
Helpwriting.net ...
So, making the discount rate lower will allow the banks to have a lower interest rate, encouraging
spending and borrowing. On the opposite of this if the interest rates were higher than this would
discourage the spending and loans. The second of the three major tools that The Fed uses would be
reserve requirements. According to the Federal Reserve Bank of St. Louis reserve requirements are
"the portions of deposits that banks must hold in cash, either in their vaults or on deposit at a
Reserve Bank" (In plain English, 2017, p.15). This works by by determining how much money is
needed in the bank at any given time. This would mean that if The Feds decreased the requirement,
then the commercial banks will have more money to give out and put into businesses. However, if
they end up raising the required amount then then this would decrease spending in businesses this
would be because the Reserve Bank would not have the money to give the commercial banks which
would then be passed on to the people. The third and final tool that The Feds use is open market
operations. This also happens to be the most used out of the three. According to the Federal Reserve
Bank of St. Louis open market operation is "the buying and selling of U.S. government securities"
(In plain English, 2017, p.15). What this does to the economy is that it allows the discussion for the
federal funds rate. Ultimately meaning that this has control over what the interest rates are on

Functions of Central Bank
Name: Ogayo Julius Muga
Ref. No: 19201/2010
BANKING & INSURANCE
CENTRAL BANK
A central Bank is a public institution that usually issues the currency, regulates the money supply,
and controls the interest rates in a country.
The central bank often also oversees the commercial Banking system within its country.
A central Bank is distinguished from a normal commercial bank because it has a monopoly and
creating the currency of that nation, which is usually that Nations legal tender.
Central Bank of Kenya is the highest Banking institution in the country and responsible for ensuring
the smooth working of banking sector and other financial institutions.
Central Bank differs from commercial banks in that it does not engage in ordinary ... Show more
These influence the stock and bond markets as well as the mortgage and other interest rates.
POLICY INSTRUMENT
The main monetary policy instruments available to central banks are open market operation, bank
reserve requirements, interest rates policy, re–lending and re–discount and credit policy.
To enable open market operations, a central bank must hold foreign exchange reserves and official
gold reserves.
It will often have some influence over any official or mandated exchange rates.
INTEREST RATES
The most visible and obvious power of many modern central banks is to influence market interest
rates.
The actual rate that borrowers and lenders receive on the market will depend on credit risk, maturity
and other factors.
A typical central bank has several interest rates or monetary policy tools it can set to influence

markets;
a. Marginal Lending Rate– a fixed rate for institutions to borrow money from the central bank
b. Main Refinancing Rate– the publicly visible interest rate the central bank announces. It is also
known as minimum bid rate and serves as a bidding floor for refinancing loans.
c. Deposit Rate– the rate parties receive for deposits at the central bank. These rates directly affect
the rates in the money market and the market for short term loans.
OPEN MARKET OPERATIONS
Through open market operations, a central bank influences the money supply in an economy
directly.
Each time it buys securities, exchanging money for the security, it raises the

Central Bank : Monetary Policy
For most of the 20th century, central bankers conducted monetary policy by relying on intermediate
targets such as monetary aggregates and exchange rates.
Until the 1970s, central banks used a currency peg, which linked the value of the domestic currency
to the value of another currency, usually of a low–inflation country. But this approach meant that the
country's monetary policy was tied to the country to which it pegged, restraining the central bank's
ability to adapt their policy to shocks such supply shocks or changes in the real interest rate.
Consequently, many central banks began to adopt flexible exchange rates, forcing them to find a
new strategy for the conduct of monetary policy.
Many countries then began targeting the growth ... Show more content on Helpwriting.net ...
First, an explicit inflation target is set: either a point or a band and the central bank aim to hit the
target at a certain time horizon.
Secondly, it enhances the transparency of monetary policy. The central bank publishes inflation
targets and forecasts and an analysis justifying the actions taken to hit the target, making their policy
accountable to the public. One might see inflation targeting as a constrained discretion framework,
where the central banks have flexibility in terms of tools, while its goals is constrained by a target.
On February 26, 1991, the Bank of Canada and the Minister of Finance announced the
implementation of an inflation targeting framework as a guide to Canada's monetary policy.
The objective of this framework was to control inflation in the short run in the face of the
introduction of the GST and the rise in oil prices and to achieve a low and stable inflation in the
long–run. The disinflation period lasted about 3 years: the first mid–point target was set at 3% by
the end of 1992, followed by a target of 2.5% in June 1994 and a target of 2% by the end of 1995,
which is still the one used today. The targets are based on the CPI (Consumer Price Index) and had a
band of plus and minus 1 percentage point.
The Bank of Canada took a major step in the direction of transparency by publishing the inflation
targets in 1991. Also, the BOC publishes an annual report and a Monetary Policy

The Decision Of The European Central Bank
It is necessary to look at the state of the Eurozone economy in order to properly analyse the decision
of the European Central Bank (ECB) on September the 4th to cut its benchmark interest rate to
0.05%, and to launch an asset purchase program to buy debt products from the banks at the same
time. Since the collapse of Lehman in 2008 and the global crisis that followed, the Eurozone has
been contracting significantly to the extent where "consumer price inflation in the Eurozone fell to
0.3% in September." (BBC, 2014) The ECB's reaction has been to reduce interest rates and make
use of quantitative easing to try to generate economic growth, albeit without much success. In June
2014, when Mr. Draghi, the president of the ECB, announced its latest cuts to 0.15%, he stated that
he couldn't see the rates dropping below this level. And yet, merely a few months later, he
announced a further drop to 0.05%, in what many considered to be a desperate attempt to help pull
the Eurozone out of deep crisis. The example of Japan's 20–year struggle with deflation and a
contracting economy was the driving force that pushed the ECB to take this drastic measure.
Therefore, it is important to analyse and evaluate the decision of the ECB, set in the context of the
current European economic situation, and the alternative policies that could be used.
The introduction of expansionary monetary policy can have many impacts on an economy. One such
impact is to stimulate consumer spending and levels of

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