What Is the Centipede Game? The centipede game is an extensive-form game in game theory in which two players alternately get a chance to take the larger share of a slowly increasing money stash. It is arranged so that if a player passes the stash to their opponent who then takes the stash, the player
What Is the Central Limit Theorem (CLT)? In probability theory, the central limit theorem (CLT) states that the distribution of a sample variable approximates a normal distribution (i.e., a “bell curve”) as the sample size becomes larger, assuming that all samples are identical in size, and regardless of the population’s actual distribution shape. Put another
What Is the XAF (Central African CFA Franc)? The XAF (Central African CFA Franc) is the official currency of six central African countries. Launched in 1945 as the franc of the French Colonies of Africa, it is backed by the French treasury and pegged to the euro. Key Takeaways The XAF (Central African CFA Franc)
What Is a Central Bank? A central bank is a financial institution given privileged control over the production and distribution of money and credit for a nation or a group of nations. In modern economies, the central bank is usually responsible for the formulation of monetary policy and the regulation of member banks. Central banks
What Is a Central Bank Digital Currency (CBDC)? Central bank digital currencies are digital tokens, similar to cryptocurrency, issued by a central bank. They are pegged to the value of that country’s fiat currency. Many countries are developing CBDCs, and some have even implemented them. Because so many countries are researching ways to transition to
What Is a Centrally Planned Economy? A centrally planned economy, also known as a command economy, is an economic system where a government body makes economic decisions regarding the production and distribution of goods. Centrally planned economies are different from market economies, where these decisions are the result of thousands of choices by producers and
What Is the Central Provident Fund? The Central Provident Fund (CPF) is a mandatory benefit account providing retirement earnings and healthcare for Singaporeans. Contributions to the retirement account originate from both the employee and the employer. There are three types of CPF accounts: ordinary, special, and medisave accounts. Key Takeaways The Central Provident Fund (CFP)
What Is Central Purchasing? Central purchasing is a department within a business or organization that is responsible for making all necessary procurement. Central purchasing works with other departments and agencies to consolidate orders for products to make use of economies of scale for receiving cheaper prices. Additionally, organizations use a central purchasing department to simplify
What Is the Centre for European Economic Research? The Centre for European Economic Research is a nonprofit economic research institution based in Mannheim, Germany. The organization provides advice on economic issues and policy to its clients, with its work focused primarily on European economies. Key Takeaways The Centre for European Economic Research, or ZEW (Zentrum
What Is a Chief Executive Officer (CEO)? A chief executive officer (CEO) is the highest-ranking executive in a company. Broadly speaking, a chief executive officer’s primary responsibilities include making major corporate decisions, managing the overall operations and resources of a company, acting as the main point of communication between the board of directors and corporate
