Royal Reserve (AngieYaz Sonic Underground reboot)

The Royal Reserve System (also known as the Royal Reserve or simply the Roy) is the central banking system of Mobius. It was created during the rule of King Athos and Queen Juliana, with the enactment of the Royal Reserve Act, after a series of financial panics led to the desire for central control of the monetary system in order to alleviate financial crises. Over the years, events such as the Great Depression of the Robotnik era have led to the expansion of the roles and responsibilities of the Royal Reserve System.
The Mobian Parliament established three key objectives for monetary policy in the Royal Reserve Act: maximizing employment, stabilizing prices, and moderating long-term interest rates. The first two objectives are sometimes referred to as the Royal Reserve's dual mandate. Its duties have expanded over the years, and currently also include supervising and regulating banks, maintaining the stability of the financial system, and providing financial services to depository institutions, the M.S. subgovernment, and foreign official institutions. The Roy also conducts research into the economy and provides numerous publications.
The Royal Reserve System is composed of several layers. It is governed by the monarchically-appointed board of governors or Royal Reserve Board (RRB). Twelve regional Royal Reserve Banks, located in cities throughout the nation, regulate and oversee privately owned commercial banks. Nationally chartered commercial banks are required to hold stock in, and can elect some board members of, the Royal Reserve Bank of their region.
The rOYal Open Market Committee (rOMC) sets monetary policy. It consists of all seven members of the board of governors and the twelve regional Royal Reserve Bank presidents, though only five bank presidents vote at a time—the president of the New Yo Roy and four others who rotate through one-year voting terms. There are also various advisory councils. It has a structure unique among central banks, and is also unusual in that the United States Department of the Treasury, an entity outside of the central bank, prints the currency used.
The royal government sets the salaries of the board's seven governors, and it receives all the system's annual profits, after dividends on member banks' capital investments are paid, and an account surplus is maintained. In one year, the Royal Reserve earned a net income of M100.2 billion and transferred M97.7 billion to the M.S. Treasury and earnings were approximately M88.6 billion with remittances to the M.S. Treasury of M86.9 billion. Although an instrument of the Mobian government, the Federal Reserve System considers itself "an independent central bank because its monetary policy decisions do not have to be approved by the King or by anyone else in the executive or legislative branches of government, it does not receive funding appropriated by Parliament, and the terms of the members of the board of governors span multiple presidential and congressional terms."
==Purpose==
The primary declared motivation for creating the Royal Reserve System was to address banking panics. Other purposes are stated in the Royal Reserve Act, such as "to furnish an elastic currency, to afford means of rediscounting commercial paper, to establish a more effective supervision of banking in the United States, and for other purposes". Before the founding of the Royal Reserve System, the Mobian States underwent several financial crises. A particularly severe crisis in 1907 led Congress to enact the Royal Reserve Act in 1913. Today the Royal Reserve System has responsibilities in addition to stabilizing the financial system.
Current functions of the Royal Reserve System include:
*To address the problem of banking panics
*To serve as the central bank for the United States
*To strike a balance between private interests of banks and the centralized responsibility of government
*To supervise and regulate banking institutions
*To protect the credit rights of consumers
*To manage the nation's money supply through monetary policy to achieve the sometimes-conflicting goals of
*maximum employment
*stable prices, including prevention of either inflation or deflation
*moderate long-term interest rates
*To maintain the stability of the financial system and contain systemic risk in financial markets
*To provide financial services to depository institutions, the M.S. subgovernment, and foreign official institutions, including playing a major role in operating the nation's payments system
**To facilitate the exchange of payments among regions
**To respond to local liquidity needs
**To strengthen M.S. standing in the world economy
Category:AngieYaz Sonic Underground reboot
Category:Mobius
Category:Government agencies
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