Send your good work in the knowledge base is simple. Use the form below
Students, graduate students, young scientists who use the knowledge base in their studies and work will be very grateful to you.
Posted on http:// www. allbest. ru/
Introduction
1. Definition of the categories “finance”, “money” and “credit”
1.2 Origin of the term “money” and its basic definitions
1.3 The concept of credit as an economic category
2. Identification distinctive features categories “finance”, “money” and “credit”
3. Identification of the relationship between the categories “finance”, “money” and “credit”
Conclusion
List of sources used
Introduction
Subject course work is relevant, which is explained by the following provisions.
Current state of the financial system Russian Federation requires a separate study of the function of state regulation, which is aimed at changing quantitative and qualitative indicators financial processes in the economy through the mechanism of formation of monetary funds, their redistribution, use in coordinating the interests of business entities in order to ensure the sustainability of the functioning of the economic system.
Finance is regulated by the state through a system of appropriate instruments, among which the main place belongs to regulations. The financial system in our country is constantly changing, which is the basis for the development of new scientific theories in financial and legal science and the science of public administration.
Complications economic processes lead to changes in social relations, which require constant transformation of the concept of “finance” in accordance with the realities of life. This contributes to the fact that the definitions “finance”, “money” and “credit” have lost their primary lexical meaning. Existence large quantity interpretations require their understanding.
Unfortunately, domestic science lags behind dynamic market trends and patterns and, thus, today the study of these categories, their distinctive features and the relationship between them is of particular relevance, since there is still no generally accepted idea in world economic science about the origin of these categories.
The theoretical study of these definitions also has practical significance, since it allows you to improve the quality of financial management, financial stability individual economic entities, financial systems and markets as a whole.
In financial science, the category of finance, as well as its individual components (money, credit), has always been and is still receiving a lot of attention from both foreign and Russian scientists since pre-revolutionary times, in Soviet period and after the transformation of the economy and restructuring of the financial system.
The purpose of the course work: to explore the distinctive features and relationships between the categories of finance, money and credit.
Coursework objectives:
Explore the origin and definition of the term “finance”;
Explore the origin of the term “money” and its basic definitions;
Explore the concept of credit as an economic category;
Identify the distinctive features of the categories “finance”, “money” and “credit”;
Identify the relationships between the categories “finance”, “money” and “credit”.
Methods and approaches used. When presenting the theoretical material, the monographic method, the method of theoretical generalization and comparison, the logical method, the methods of induction and deduction, the methods of grouping and generalization, the graphic method, and the empirical method were used.
1. Definition of the categories “finance”, “money” and “credit”
1.1 Origin and definition of the term "finance"
To better understand any term, as a rule, its origin is studied. The term "finance" has its origins from the Latin "finis", which means "end". In the Middle Ages, this term was used to indicate the deadline for payment, and then to define the documents that indicate the repayment of the debt, according to which the transaction was completed.
The foreign language dictionary notes that the concept of “finance” comes from the French finance - a set of economic relations that arise in the process of formation and use of centralized and decentralized monetary funds. Dictionary of foreign words: 23,000 words and terminological phrases. M.: Akademizdat, 2000. - 1081 p.
However, a more detailed history of the origin of the term “finance” can be found in the work of S.I. Ilovaisky Ilovaisky S.I. Textbook of financial law. - 5th ed. add. and processed G.I. Tiktin / [ed. N.P. Yasnopolsky]. - Rostov-on-Don: Phoenix, 2009. - 604 pp. He writes that the term “finance” (French and English version - “Finance (s)”, German - “Finanz (-en)”) takes its etymological originated from the Latin word “finis,” which meant “due date.” From the word “finis” the medieval Latin words “finatio”, “financia”, “financia pecuniaria” were formed, which were used in the 13th and 14th centuries. In terms of monetary obligation, payment, amount of funds.
According to another point of view, the term "finance" in German comes from:
English “fine” (fine, fee);
From the German “fein” (thin, as well as dexterous, cunning);
From German "finden" (to find), "erfinderish" (resourceful, as well as cunning, cunning).
The last two assumptions are confirmed by the fact that in the XVI and XVII centuries. in Germany the word "Finanz" was used to mean cunning, deceit, infidelity, hatred and envy. At the same time in France the word “finance” was already used in the meaning government revenues, and the word “finances” means all state property and the state of the state economy. This French meaning of the word “finance” is gradually spreading in Germany, displacing the old meaning of the German word proper, and gradually becoming technical term in the languages of most modern cultural peoples Ilovaisky S.I. Textbook of financial law. - 5th ed. add. and processed G.I. Tiktin / [ed. N.P. Yasnopolsky]. - Rostov-on-Don: Phoenix, 2009. - 604 pp..
Note that such an explanation of the etymology of the term “finance” can now be found in almost many textbooks and dictionaries.
In the explanatory dictionary of economic and financial terms, when defining the term “finance,” it is noted: “Dealing with property that is constantly losing its material content, this term does not have clear contours, but the most common are the following definitions:
– finances of an economic entity - indicate the state of its capital;
– public finance - refers to the area of managing funds that are at the disposal of the state and government agencies;
– finance - as the conditions under which results are generated and used financial transactions» Bernard I. Sensible economic and financial dictionary. French, Russian, English, German, Spanish terminology: in 2 volumes / I. Bernard, J.-C. Collie; lane from fr. - M.: International. relations, 1994. - T. 1. - P. 735..
The description of finance as an economic category in the economic encyclopedia is versatile: “Finance is a set of monetary relations associated with the formation, mobilization and placement of financial resources and with the exchange, distribution and redistribution of the value of the gross domestic product created on the basis of their use, and under certain conditions - national wealth. Finance is one of the most important and complex economic categories.
The main purpose of finance is to provide every individual, every business entity, every government agency, and therefore society as a whole, with sufficient funds to carry out their activities.
Finance has a visible (external) form of manifestation and internal content. The form is manifested in cash flows between subjects of financial relations. These flows (their nature and forms, direction and volumes) are the subject of practical financial activities. The substantive side is related to the fact that finance reflects certain cash flows: the movement of the value of GDP created in society - exchange and distribution relations Questions of the theory of finance / [ed. V.P. Dyachenko]. - M.: Gosfinizdat. - 2009. - 192 p..
“Finance” is one of the most used economic categories in the conceptual apparatus of economic science. Therefore, every researcher of questions financial theory devotes time to her Special attention. Despite this, there is no single point of view regarding the content and economic interpretation of finance. The differences vary depending on the goal that the researchers set for themselves.
In S. Ilovaisky’s textbook, the concept of finance is given, which boils down to the following: “political unions, in order to carry out all their tasks, must have at their disposal material resources, the wealth and expenditure of which is a special task for them. They need funds to create “public goods” (Sax), that is, items common to all members of the union for consumption. For example, public artificial roads, public gardens, parks, storage of books, art objects. Or as technical auxiliary means of public activity (for example, armament of the army and navy). Or for the payment of officials and workers and for partial remuneration or reimbursement of expenses to persons who perform personal duties, or, finally, for the purpose of providing free assistance to needy members of the union. In addition, the acquisition of material resources for these purposes in itself necessitates the need to have material resources to spend specifically as an acquisition, that is, to obtain directly necessary economic benefits with their help.”
To the two main, primary and immediate goals of political unions - ensuring law and order and political independence and promoting all aspects of the well-being of the population, S. Ilovaisky considers the third, secondary, derivative, uncoordinated with others, but such a goal that relates to them as a means to an end. Consequently, two goals arise in political unions:
1) promoting the material well-being of the population;
2) acquisition and consumption of material resources.
According to these two different categories of economic goals, the economic life of political unions is divided into two spheres, of which the first is called economic management or economic policy, second - financial management or financial policy or just finances.
In the textbook on financial law by M. Karaseva Karaseva M.V. Financial right: [cr. textbook course] / M. Karaseva, Yu. Krokhi na. - M.: NORM, 2002. - 279 p. notes that “finance is the relationship that regulates the formation, distribution and use of centralized and decentralized monetary funds.” The most important signs, properties, features that reveal the essence of finance are reflected in their functions Financial law / resp. ed. N.I. Khimicheva. - M.: Yurist, 2011. - 733 p..
Close to this is the definition of finance in the textbook edited by N.I. Khimicheva. However, the authors especially emphasize the purpose of the functioning of finance in the state: “in its material expression, finance represents the monetary funds of the state, its territorial divisions (federal subjects, municipalities), enterprises, organizations, institutions that are used to meet the needs of society and develop production.”
Two aspects of the concept of “finance” are given in the textbook by famous Russian lawyers and financiers N.V. Karaseva and Yu.A. Krokhina: “Finance can be viewed from an economic and material point of view.
In the economic aspect, finance is economic relations related to the formation, distribution and use of centralized and decentralized funds Money a wide variety of subjects (states, municipalities, enterprises, organizations).
In the material aspect, finance represents the monetary funds of the state, state-territorial and municipal entities, enterprises, institutions, organizations, which are used to materially support the needs of society and the development of production.
Consequently, financial and legal theory should be aimed at solving a scientific problem that changes along with the transformation of economic relations in the state, since: “with any definition of finance, it should be borne in mind that finance is primarily an economic category for which its social essence" Finance = Finance: [textbook. for university students studying economics. special] / L.A. Drobozina, G.B. Polyak, Yu. N. Konstantinova and others; [ed. L.A. Drobozina]. - M.: Finance, UNITY, 2009. - 527 pp..
Representatives of financial and legal science are increasingly moving away from the theory that was formed in Soviet times and are modernizing their interpretation of the content of finance as a subject of the legal field.
The main assets of the social sciences in the financial sector should be identified.
1. Finance is always a monetary relationship. The monetary nature of financial relations is the first sign of finance as a specific value category. One of the subjects of finance is the state, and money serves as the material basis for the existence and functioning of finance.
2. Finance can only exist if there is a state - this is the second sign of this specific value category. Finance is characterized by the movement of funds, which does not go beyond the distribution process, and is not equivalent. The real formation of financial resources begins at the distribution stage. Having arisen at the stage of distribution, they are an integral part of the entire reproductive process, exerting their influence on it.
3. Finance belongs to the economic basis, since it is part of production relations, but at the same time, they are connected and directly determined by the existence of the political superstructure of the state and exist only as relations that have a state-power form. Since the emergence of the superstructure state is caused by economic necessity, the redistribution relations that are generated by it appear as objectively necessary.
4. Finance should include social relations that arise in the process of formation, distribution, redistribution and use of funds of both state and local government of all types, as well as funds of funds of enterprises, organizations and institutions.
8. The essence of finance is revealed in detail in its functions, which characterize public purpose categories. Finance performs the following functions: distribution; control, regulatory, stabilization.
1.2 Origin of the term “money” and its basic definitions
Trade played a big role in the history of mankind - it gave birth to money. Before the advent of money, there was a system of exchange of goods throughout the world. However, with a direct exchange, the parties were dissatisfied with the fairness of the exchange or its unequivalence. A need arose for some kind of intermediary to which all other goods could be equated. A lot of time passed until an equivalent was found that would have value, would not deteriorate for a long time and would be convenient in commercial relations. The metal equivalent was gold and silver.
Over time, the word “gold” became synonymous with the word “money.” Gold and silver as money are also convenient because they can be accumulated in the form of treasures, while they do not change their properties and do not depreciate. However, all available deposits of precious metals were exhausted in antiquity. The era of metallic money was replaced by the era of paper money. According to historical research, paper money first appeared in China back in the 8th century. n. e. Thus, money has gone through a complex path of development in the process of its evolution, during which the term “money” was subject to various interpretations.
W. Stafford Stafford W. A critical presentation of some complaints of our compatriots / W. Stafford; lane from English - M.: System, 2006. - 90 p. 3., T. Mann, D. North Man T. The wealth of England in foreign trade, or the balance of foreign trade as the principle of our wealth / T. Man. - M.: Politizdat, 2004. - 91 p. define money as the wealth of the state, identified with precious metals. On this basis, the authors associate the essence of money with the natural properties of gold and silver.
According to P. Samuelson, money is an artificial social convention Samuelson P. Economics. Introductory course / P. Samuelson. - M., 2009. - 161 p., but G. Knapp noted that the essence of money lies not in the material of signs, but in the legal norms that regulate their use Knapp G. State theory of money / G. Knapp; lane with him. - St. Petersburg, 2003. - 592 p. .
F. Bendixen defined money as evidence of the provision of services to members of society, which gives the right to receive reciprocal services Bendixen F. About the value of money / F. Bendixen; lane from English - M.: Academy, 2007. - 171 p. .
K. Marx interpreted them as a special commodity, a universal value equivalent, and believed that in the process of development of the social division of labor, a need arose for a regular exchange of labor results. Goods are exchanged because a certain amount of socially necessary labor is spent on their production, which constitutes their value. Money is an equivalent commodity for expressing value Marx K. Capital. In 3 volumes // K. Marx and F. Engels. - T. 23, Ch. 3. - M.: Politizdat, 1960. - 906 p..
J. Gix and L. Harris interpreted the concept of money as a social phenomenon, therefore money becomes a commodity that can perform the functions of a means of circulation, payment and exchange of value Gix J. Cost and capital / J. Gix // Proceedings. - M: Academy, 2005. - 110 p..
Consequently, money is a commodity that plays a unique role as a universal equivalent and performs certain functions.
Thus, in the literature there are many different definitions of money that differ significantly from each other. However, it is possible and advisable to group most definitions of money in order to determine their essence as accurately as possible.
Based on the fact that money is a social phenomenon, its essence changes in accordance with changes in the nature of the social relations in which it operates. Therefore, it is not surprising that centuries-old studies of the essence of money today do not provide an unambiguous and final answer to the question of what money is. At the same time, there are alternative approaches to solving the essence of money.
The dominant approach in modern Western monetary theory is a purely empirical approach. The essence of money according to this approach is determined, as a rule, only on the basis of its functional application. The output theoretical construct of this approach was the well-known thesis proposed by American economist F. Walker: “Money is what it does.” Vivid examples of a purely functional approach to this issue are the following definitions:
K. McConnell and S. Brew: “Money is what it makes it. Everything that performs the functions of money is money” McConnell K.R., Brew S.L. Economics. Principles of the problem and politics T.1 M.: Respublika, 1992.
“Money and Banking: a market oriented approach”: “Money can only have a functional definition.” To the question “what is money?” It’s easier to explain “how money is used.” And then there is this definition: “Everything that performs monetary functions is money” Johnson I.C., Roberts W.W. Money and Banking: a market oriented approach. Eleventh Ed. California State University, 1990..
The essence of money needs to be studied in theoretical and applied aspects. Theoretical aspect reveals the deep essence of money, and the applied one seems to complement its essence as a form of external manifestation. Therefore, the theoretical and applied aspects of the essence of money must be considered not separately, but from the standpoint of dialectical unity. finance money loan economic
In modern social conditions for the development of monetary relations, the essence of money from the standpoint of solving theoretical problems that characterize its deep essence is most fully revealed by the portfolio approach, which considers money as a liquid asset, but only when the asset plays the role of a medium of exchange.
The essence of money in a purely applied aspect (as a form of external manifestation) is better determined, in our opinion, by the functional approach. It is precisely the five monetary functions (measures of value, means of circulation, accumulation, payment and world money) argued by K. Marx that allow, in modern social conditions for the development of monetary relations, to determine the essence of money in a purely applied aspect.
With changes in social conditions, not only the forms and functions of money changed, but also their essence. Obviously, all this can be explained by the fact that money (as an economic and historical category) is a social phenomenon and therefore its essence changes in accordance with changes in the nature of the social relations in which it operates.
1.3 The concept of credit as an economic category
Every day the question of the essence and nature of credit is becoming increasingly relevant, since a deep analysis of scientific approaches to determining the content of credit contributes to a better and correct understanding of the role of banking institutions, credit unions, cooperatives, leasing companies as their main organizers.
It is known that the term credit comes from the Latin “creditum”, which means “loan”, “debt”. This term is also translated as “I believe”, “I trust” Abramova M.A. Finance and credit: Textbook. allowance [Text] / M. A. Abramova, L. S. Aleksandrova. ? M.: Jurisprudence, 2010. ? 448 pp.. In modern economic literature we find several definitions of credit, several interpretations of its essence.
However, the most common are two approaches to determining the essence of a loan. Firstly, credit in a number of works is characterized without any statements regarding economic relations. In the economic encyclopedia, credit is considered “as a type of economic transaction when one partner provides another with money or property on terms of urgency and repayment” Voronin V.P. Money, credit, banks: Textbook. allowance [Text] / V. P. Voronin, S. P. Fedosova. ? M.: Yurayt-Izdat, 2012. ? 269 p.. The financial and credit dictionary states: “credit is a loan in monetary or commodity form on the terms of return and, as a rule, with the payment of interest.”
The above definitions identify credit with the value that is transferred by one economic entity to another as a loan. That is, credit is considered as a purely technical category. With this approach, the attention of researchers shifts to the loan itself, its legal form, at the same time, the economic content of the loan is “lost”. This understanding of credit in a market economy is somewhat narrowed.
The interpretation of a loan as an economic property relationship is the most successful and reliable, since it gives grounds to assert that the loan is not associated with the transfer of ownership (i.e., the owner remains the creditor, who reserves the right in case of non-repayment of the loan and interest on it to demand its compensation) , and, therefore, is not only an economic and historical, but also a legal category. The owner of the value remains the lender, while the borrower has the opportunity to temporarily use only the use value of the money or goods provided on credit.
So, the definitions of the category “credit” in modern economic literature are ambiguous. “Credit” is considered as a specific financial service and as an economic category. The duality of the content of the concept of “credit” is not an isolated case in economics. For example, the concept of “budget” is considered as a financial plan, as an economic category and in terms of material content. However, within the framework of the dualistic perception of credit, there are certain contradictions. “Credit” as a financial service is defined as:
a) “borrowed capital of the bank”;
b) “provision of funds, goods, works, services” (that is, as a process);
c) “providing a sum of money” (also as a process); “providing a sum of money or a valuable liquid asset”;
d) “a form of transfer of funds for temporary use”;
e) “loan in cash or commodity form”.
Emphasizing the independence of the “credit” category, it should be noted that only for it the characteristic movement of value on the principles of return, compensation and equivalence is not associated with the transfer of ownership when providing funds on a loan.
As an economic category, credit is a set of individual specific economic relations. From these positions, there are definitions of a loan “as a relationship between a lender and a borrower regarding the movement of the value of what is returned.”
The essence of credit is directly (most fully) expressed through credit relations, functions and forms of credit. The nature of the loan is indirectly affected by its types. As an economic category, credit is a set of individual specific economic relations.
The concept of credit is dual and consists of an understanding of credit as an economic category and as a financial service. As an economic category, credit represents economic relations regarding the distribution and redistribution of added value between economic entities over time on the basis of repayment and urgency and has the properties of objectivity, consistency, and constancy. As a financial service, credit has the properties of elementaryness, volatility, discreteness and subjective-objectivity and is based on the principles of security; repayment; urgency; intended use; payment.
Credit as a financial service can be defined as follows: “Credit? “This is a financial service that consists of the transfer of capital for temporary use in cash, cash-in-kind, in-kind form on the terms of repayment and urgency.”
It is the understanding of credit as a financial service that forms the theoretical basis for the functioning of the bank lending mechanism, since banks are the main entity that accepts and/or provides this service.
2. Identifying the distinctive features of the categories “finance”, “money” and “credit”
There is no doubt that the category “finance” is close in meaning to the category “money”, but there are also fundamental differences between them, since money is a more general concept (Table 2.1)
Table 2.1 - Difference between money and finance in content
Having money is one of the prerequisites for the existence of finance. However, money is not finance and does not determine the essence of finance, its internal content and social purpose.
Table 2.2 - Difference between money and finance by function
Finance is structured monetary relations reduced to a certain system of capital (fixed, working capital), cash funds, and the like. Any form of capital, having a valuation, begins its movement thanks to the acquisition of a financial form.
Consequently, money is a technical means of finance; on its basis, the amounts of income and expenses are determined, which determines the monetary dimension and the nature of finance.
Financial relations are part of monetary relations; their sphere is already monetary relations.
The difference between finance and money is that financial relations always have a connection with the formation cash income and savings that acquire a specific form of financial resources.
Credit is especially closely connected with money, and this connection is becoming stronger as development progresses. social production and complications of economic relations. However, credit differs from the category of money (Table 2.2).
Credit differs from money (as money) in the following ways:
They have a different composition of subjects - carriers, respectively, of monetary and credit relations: in the first case they are the seller and the buyer, in the second - the lender and the borrower, who may not be the same;
They have a different nature of the movement of value: in purely monetary relations there is a counter, equivalent movement of two different forms of value - commodity and monetary, and in credit relations - an unequal movement of value in monetary or commodity form;
They have different social purposes in the process of reproduction. Money is intended to ensure the realization of consumer value and bring it to the end consumer. They are also a means of accumulating realized value. The loan is intended to satisfy the temporary needs for additional funds of some economic entities and to facilitate profitable placement free funds-- For others. Even if the loan is carried out in monetary form, its inherent purpose does not change. And vice versa, if a loan (instead of money) ensures the delivery of the produced value to the final consumer (sale of goods with deferred payment), it does not replace money in the realization of this value: when the loan matures, only money can provide an equivalent payment for the goods, although it acts it is in the form of repaying the debt of Vovchak O.D. Credit and banking: textbook. allowance - Rostov-on-Don: Phoenix, 2010. - 421 p.;
Credit by area of use is a “narrower” category than money. Money serves the sale of all GDP (except barter), distribution and redistribution of its value, and credit serves the movement of only part of GDP in the process of reproduction. Therefore, participants in monetary relations include all legal and individuals society, and credit relations - only a certain part of them;
Movement of money from one economic entity to another (in non-credit relations) is always accompanied by a change in the owner of the corresponding value represented by money: ownership of money passes from the payer to the recipient. When a credit transfer of value occurs, the creditor always remains its owner. Even when selling goods on credit, the seller retains ownership of them, which is confirmed by the return of the cost when the buyer repays the debt.
So, credit and money are two independent economic categories, each of which has its own specific purpose, scope of use and nature of value movement.
There are significant differences between credit and finance. Unlike credit, finance is formed in the process of value distribution, while credit is formed in the process of redistribution. The movement of value in financial relations is associated with a change of ownership, is not repayable and paid, and is determined primarily by non-market, administrative-volitional factors. Finance and credit operate primarily in parallel, in separate economic segments, complementing rather than replacing each other. And even in cases where finance and credit are used in the same economic segment, they are not depersonalized, but retain their specific specificity Logutova T.G. Money and credit: lecture notes. M., 2009..
For example, in the execution of the state budget, both purely financial relations (taxes and budget financing) and credit relations (government loans) can be used. However, if the financial relationship after the end budget year are basically completed, then the lending relationship will continue until the state repays the entire amount government debt associated with the formation of a specific budget.
Credit also differs significantly from trade, first of all, in the unequal movement of value during lending. In trade, the movement of value is carried out on an equivalent basis. At the same time, credit and trade are also closely intertwined: trade is increasingly carried out on credit, and credit is organized on the principles of trading in debt obligations.
3. Identification of the relationship between the categories “finance”, “money” and “credit”
Economic science has proven, and economic practice has confirmed, the relationship between finance and credit. This relationship is manifested primarily in the fact that credit is a universal tool for the distribution and redistribution of national income, financial resources, material and labor resources, equalizing the levels of profitability of enterprises based on the flow of capital, which contributes to progressive structural changes in the national economy.
Finance and credit have the same economic nature; at the same time, finance is a distributive and redistributive category, and credit is exclusively redistributive. Finance creates the prerequisites for the functioning of credit; credit resources act as a type of financial resources.
The relationship between the category “finance” and the category “credit” is manifested in their integrated use in the process of circulation of funds and their contribution to increasing production efficiency: if there is a lack of finance, the organization can attract credit resources, and if there is an excess of finance, the organization has the opportunity to temporarily use its available funds as credit resources .
Also, being an important category of a market economy, credit is interconnected with money, reflecting real connections and relationships in the economic life of society and remaining an important lever in stimulating the development of production.
The need to expand production with a lack of accumulated monetary resources, expressed own funds business entities or individuals, indicates that a loan is needed by an already functioning business entity, but most of all, a loan is needed for those who plan to organize their own business structure, but experience a lack of capital (financial resources).
A similar situation is observed in the sphere of consumption, where a loan provided in cash is necessary for individuals whose needs do not always coincide with existing savings. The initial basis of any process economic development is the formation of a new combination in the use of existing ones in society production resources. It is the entrepreneur who plays the main role in ensuring the movement of available financial resources. This movement is carried out with the help of credit. Only on its basis does it become possible to use existing capital (finance) not in the area where it was created, but where it has the greatest chance of increasing its monetary value.
Also, the relationship between “credit” and “finance” can be traced based on the empirical nature of the object “credit as an economic category”, which is most often (as research has shown) defined as economic relations, which is quite justified given the fact that credit is part of finance, and, accordingly, it must have the same empirical object as finance. The definition of the empirical object of credit as “social relations” is too broad, since it assumes the possibility of taking into account such relations that may not have a monetary or even value form.
Credit, as part of finance, participates in the distribution of added value, but this distribution for credit is carried out primarily not in space, but in time. Thus, “credit as an economic category” correlates (and has an interrelation) with the category of finance as the particular with the general, since the set of economic relations regarding distribution and redistribution for credit is carried out in a narrower space-time continuum than for finance. The main connections that unite the category of credit with the category of finance are thus manifested through the category of added value. The main feature of the empirical object of credit is the repayment of relations, since the current distribution of added value presupposes its redistribution between the recipient and the donor in the future.
The relationship between the categories “finance” and “money” can be identified in a study of the purposes of finance. The purpose of finance is to provide every individual, every business entity, every government agency and society as a whole with sufficient funds to carry out their activities. The main purpose is to meet the needs of society and the development of production.
Finance has a visible (external) form of manifestation and internal content. The form appears in cash flows between subjects of financial relations. These flows (their nature and forms, direction and volumes) are the subject of practical financial activities. The substantive side is related to the fact that finance reflects certain cash flows: the movement of the value of GDP created in society - exchange and distribution relations.
Finance reflects economic relations, thanks to which not only sectors of the economy, the sphere of production, but also the non-productive sphere, the functions of state institutions and local self-government are provided with sources of financing (money).
Conclusion
The conducted research allows us to formulate the main conclusions.
So, the distinguishing features between the categories of money and credit are the following: specific purpose, scope of use and nature of the movement of value.
The distinctive features between the categories of money and finance are the following: money is not finance and does not determine its essence, internal content and social purpose. The differences between these two categories are in the manifestation of their functions: money can be paid, it can be exchanged, accumulated, and expressed value with it; Finance redistributes resources, creates income funds, and stimulates financial flows. Finance, acting as structured monetary relations, brings capital to a certain system (main, working capital), funds of funds. And money is a technical means of finance, on the basis of which the amount of income and expenses is determined, which determines the monetary measurement and the nature of finance.
The differences between credit and finance are significant. Unlike credit, finance is formed in the process of value distribution, and credit is formed in the process of redistribution. Finance and credit operate primarily in parallel, in separate economic segments, complementing rather than replacing each other.
The relationship between finance and credit has been identified, which is manifested in the fact that with the help of finance, the prerequisites for the functioning of credit are created; in turn, credit resources act as a type of financial resources.
List of sources used
1. Abramova M. A. Finance and credit: Textbook. allowance [Text] / M. A. Abramova, L. S. Aleksandrova. ? M.: Jurisprudence, 2010. ? 448 p.
2. Bendiksen F. About the value of money / F. Bendiksen; lane from English - M.: Academy, 2007. - 171 p.
3. Bernard I. Explanatory economic and financial dictionary. French, Russian, English, German, Spanish terminology: in 2 volumes / I. Bernard, J.-C. Collie; lane from fr. - M.: International. relations, 1994. - T. 1. - P. 735.
4. Issues in the theory of finance / [ed. V.P. Dyachenko]. - M.: Gosfinizdat. - 2009. - 192 p.
5. Vovchak O.D. Credit and banking: textbook. allowance - Rostov-on-Don: Phoenix, 2010. - 421 p.
6. Voronin V.P. Money, credit, banks: Textbook. allowance [Text] / V. P. Voronin, S. P. Fedosova. ? M.: Yurayt-Izdat, 2012. ? 269 p.
7. Gix J. Cost and capital / J. Gix // Proceedings. - M: Academy, 2005. - 110 p.
8. Ilovaisky S.I. Textbook of financial law. - 5th ed. add. and processed G.I. Tiktin / [ed. N.P. Yasnopolsky]. - Rostov-on-Don: Phoenix, 2009. - 604 p.
9. Karaseva M. V. Financial law: [krat. textbook course] / M. Karaseva, Yu. Krokhi na. - M.: NORM, 2002. - 279 p.
10. Knap G. State theory of money / G. Knap; lane with him. - St. Petersburg, 2003. - 592 p.
11. Logutova T.G. Money and credit: lecture notes. M., 2009. - 216 p.
12. McConnell K.R., Brew S.L. Economics. Principles of the problem and politics T.1 M.: Republic, 1992.
13. Man T. The wealth of England in foreign trade, or the balance of foreign trade as the principle of our wealth / T. Man. - M.: Politizdat, 2004. - 91 p.
14. Marx K. Capital. In 3 volumes // K. Marx and F. Engels. - T. 23, Ch. 3. - M.: Politizdat, 1960. - 906 p.
15. Samuelson P. Economics. Introductory course / P. Samuelson. - M., 2009. - 161 p.
16. Dictionary of foreign words: 23,000 words and terminological phrases. M.: Akademizdat, 2010. - 1081 p.
17. Stafford W. Critical presentation of some complaints of our compatriots / W. Stafford; lane from English - M.: System, 2006. - 90 p. 3.
18. Financial law: [textbook] / [ed. prof. E.Yu. Gracheva]. - M.: Law and Law; KolosS, 2003. - 384 s.
19. Finance = Finance: [textbook. for university students studying economics. special] / L.A. Drobozina, G.B. Polyak, Yu. N. Konstantinova and others; [ed. L.A. Drobozina]. - M.: Finance, UNITY, 2009. - 527 p.
20. Financial law / resp. ed. N.I. Khimicheva. - M.: Yurist, 2011. - 733 p.
21. Johnson I.C., Roberts W.W. Money and Banking: a market oriented approach. Eleventh Ed. California State University, 1990.
Posted on Allbest.ru
...Similar documents
The essence of finance and credit in market economy. Characteristics of modern monetary system. Socio-economic essence of the budget. Principles, functions, forms and types of credit. Analysis of international monetary, financial and credit relations.
course of lectures, added 05/24/2010
Concepts of origin and essence of money, their role in social reproduction. Concept and types monetary systems. The essence of credit. Credit and financial organizations. Operation banking system. Fundamentals of international monetary relations.
tutorial, added 09/14/2015
Origin and functions of money. Money as a means of creating treasures. The necessity and essence of credit. Fluctuations in the circulation of fixed assets. Participants economic process as a lender and borrower. Movement of the loaned value.
test, added 07/10/2009
The essence of the economic category of money as a universal commodity, which is a universal equivalent, its main functions, forms and types. The relationship between the history of banknotes in any form and the history of inflation. Character traits and movement cash flow.
abstract, added 11/04/2009
Origin of credit and credit relations. Its basic concepts, functions, forms and types, place in the economic system of society. Analysis of the formation of forms and types of the Russian credit market. Problems and prospects for the development of this financial sector in the Russian Federation.
course work, added 11/09/2014
The concept of monetary circulation and the functions of money. Financial system of the Russian Federation. The state budget as the main link of the financial system. Income and expenses of regional and local budgets. Cash funds of enterprises. The essence of credit, its functions and forms.
course of lectures, added 11/25/2010
The concept of credit and credit relations. Characteristics of the principles, functions and roles of lending. Features of providing a loan for a small enterprise. Factors determining the size of the loan fee. Activities of the banking system of the Russian Federation.
course work, added 01/30/2014
The concept of money, its forms and types, classification and features of functioning in the economic system. Paper money and their characteristics. Origin credit money and their main forms, the economic nature of credit money, their impact on the economy.
course work, added 01/21/2010
Fiat money and its forms. Structure of Russia's money supply. Credit and money issue in Russia. Changing the boundaries of loan application as a result of changing conditions macroeconomic equilibrium and the activities of the individual company.
test, added 03/22/2010
Types of budgets. State debt. Finance, credit, money are the main regulators of both the economy and social relations in general. These regulators ensure the constant development of society. The obligatory existence of money.
1. Relationships and differences between money, credit and finance
Finance – special economic relations that arise in the process of formation and distribution of funds of funds. The range of participants is wide: from the state to the citizen of the country. Finance cannot exist without subjects of financial relations conducting settlements with each other in monetary form, because finance is understood not so much as money, but as monetary settlements in the economy. Not all monetary relationships express financial relationships. Finance differs from money both in its content and in its functions: Money – a special commodity, a general equivalent or a universal equivalent form of value for all other goods. Those. money – this is the economic content and material form of finance. No money - no finances. Finance, as a special economic relationship, is directly related to the distribution and redistribution of GDP and income for the formation of monetary funds and financial resources generated and regulated by the state. The main purpose of finance is to provide, through the formation of monetary funds, the needs of the state and economic entities for funds and, at the same time, to organize control over their intended use. Thus, finances are secondary, i.e. derivative, cost category. Financial relations are always mediated by certain legal acts regulating monetary relations.
One of the ways to implement financial policy is credit. Credit (from Latin credere - to trust) - economic relations between the lender and the borrower regarding the transfer of a temporarily free amount of money (value) on the principles of repayment, urgency, payment. Credit is the movement of loan capital. Loan capital is money capital lent by the owner on the terms of repayment for a fee in the form of interest. Credit differs from money in the following ways: 1) the composition of the bearer subjects: in monetary relations – the seller and the buyer, in credit relations – the lender and the borrower, which may not coincide; 2) the nature of the movement of value: in purely monetary relations - counter (equivalent movement of two different forms of value - commodity and monetary), in credit - unequal movement of value in monetary or commodity form; 3) public purpose in the process of reproduction: money is intended to ensure the realization of use value and bring it to the final consumer, and is also a means of accumulating realized value; credit is intended to satisfy the temporary needs for additional funds of some economic entities and to facilitate the profitable placement of available funds for others; 4) credit in terms of use is a “narrower” category than money. Money serves the sale of all GDP (except barter), distribution and redistribution of its value, and credit serves the movement of only part of GDP in the process of reproduction. Therefore, the participants in monetary relations are all legal entities and individuals of the company, and in credit relations - only a certain part of them; 5) movement of money from one account. subject to another (in non-credit relations) is always accompanied by a change of owner: ownership of money passes from the payer to the recipient; when a credit transfer of value, its owner always remains the creditor. Even when selling goods on credit, the seller retains ownership of them, which is confirmed by the return of the cost when the buyer repays the debt; 6) when the loan matures, only money can provide an equivalent payment for the goods, although it acts in the form of debt repayment; 7) loan capital is one of the forms of self-increasing value, while money itself does not provide growth.
Thanks to the widespread development of credit, money acquires another status - capital, and its social purpose is bifurcated into money and property. That. credit and money are two independent economic categories, each of which has its own specific purpose, scope of use and nature of the movement of value.
Finance and credit have a common economic nature - they are based on commodity-money relations. There are significant differences between credit and finance: 1) finance is formed in the process of distribution and redistribution of value, credit - only in the process of redistribution;
2) a loan is always provided on the terms of payment, repayment, urgency and material security, the movement of value in financial relations is associated with a change in ownership and is not reversible and paid (with the exception of budget loans), it is determined mainly by non-market, administrative-volitional factors; 3) the scope of use of financial resources is wider than credit; 4) credit is directly related to cash flow, and finance does not influence money turnover.
Finance and credit operate primarily in parallel, in separate economic segments, complementing, rather than replacing, each other. And even when finance and credit are used in the same economic segment, they are not depersonalized, but retain their specific specificity. For example, when implementing the state budget, both purely financial relations (taxes and budget financing) and credit relations (government loans) can be used. However, if financial relations are largely completed at the end of the budget year, then credit relations will continue until the state repays the entire amount of public debt associated with the formation of this budget.
| " |
D – Ti T – D
As a result of these processes, the total social product is distributed, both in physical form and in value, i.e. The attribution of finance to a particular function is either one-way or two-way movement of money.
1st and 2nd function specifically manifested in the preparation of balances of expenses and income of an enterprise, as well as the flow of cash flows and the creation of cash flows and the creation of cash funds.
3 function: consists in creating and using systemic financial control over compliance with cost proportions between the formation and expenditure of funds and funds.
Financial control arises because financial relations can be planned and regulated because there are specific subjects of financial relations, norms, standards and purposes for the use of resources. Because it operates through the system of money and capital, and therefore through systems and forms of payments, loans, and taxation. For example, a buyer making financial control over the activities of the seller, pays for goods when they comply with the terms of the contract, and the seller controls the buyer through issued bills, through various shapes calculations. The lender controls the borrower through collateral and insurance. The state and local authorities control enterprises through a system of taxes and duties. Specific manifestation control function practical activity is drawing up and tracking the implementation schedule financial obligations:
· Financial arrangements between partners
· Origination and repayment of receivables
· Repayment of a credit
3
Money and finance differ sharply from each other, both in content and in functions.
Finance – relations related to the circulation of money, i.e. have the meaning of a derivative of money.
Money - a means of payment for goods or a means of measuring value, as well as preserving its properties. This is a rather complex economic category. They can serve as a sign of exchange and serve as an intermediary in the exchange of one product for another.
Karl Marx identified 5 functions of money:
1- Measure of value
2- Medium of exchange
3- World money
4- Means of payment
5- As a means of accumulation and savings
Many economists today identify only 3 functions:
1- Medium of exchange
2- Measure of value
3- Storage medium
Money is a thing that can be lost and found.
The relationship of a citizen who has lent money to another person is a financial relationship. Moreover, these relations are regulated to a certain extent, i.e. the person who provided the money - creditor, the person who took the money - borrower. The general definition of “money and finance” implies the following signs of finance:
1- Monetary nature of the relationship
2- Controlling nature
3- Availability of financial resources as material carriers of certain financial relations.
Any cash flow has neither a beginning nor an end, but it can be divided into separate parts and elements, and each element has a starting and ending point of the report; in other words, it is the turnover of money.
The relationship between these flows can be characterized as follows
1- Finances reflect cash flow
2- Finance reflects the process of obtaining cash as a result of capital movements.
The circulation of money in the economic system can be carried out according to different cycles:
1- Flow of goods
2- Flow of money, work or services (public expenditure on the purchase of goods)
3- Flow of money for any consumed resources (payments)
4- Flow of resources needed to produce goods.
Regarding the circuit financial flows, then we can distinguish:
1 revolution: the flow of goods moves clockwise, as does the flow of resources necessary for the production of goods, i.e. resources will belong to the population, which exchanges them with economic entities for finished goods. This process can be started with simple exchange, otherwise barter.
2nd turn: represented by movement finished goods, which are transferred from the economic entity to the population. This flow must be balanced by the total flow of payments (or household expenses)
The combination of these turnovers forms the circulation of money and goods. The scheme of such turnover is presented in Fig. No. 2.T.o. the capital of an economic entity and the capital of the population is ultimately aimed at generating national income. At the same time, the capital of the population is the money remaining after taxes, purchases of goods, i.e. put into circulation by him for the purpose of making a profit, i.e. capital is wealth, or value provided in monetary terms; as a rule, the state must regulate money circulation by levying taxes and government loans. Ultimately, the capital of an economic entity (both the subject and the population) turns into revenue from the sale of products.
The cash flow model of a business entity is presented in Figure No. 2a.
Identifying the distinctive features of the categories “finance”, “money” and “credit”
There is no doubt that the category “finance” is close in meaning to the category “money”, but there are also fundamental differences between them, since money is a more general concept (Table 2.1)
Table 2.1 - Difference between money and finance in content
Having money is one of the prerequisites for the existence of finance. However, money is not finance and does not determine the essence of finance, its internal content and social purpose.
Table 2.2 - Difference between money and finance by function
Finance is structured monetary relations reduced to a certain system of capital (fixed, working capital), cash funds, and the like. Any form of capital, having a valuation, begins its movement thanks to the acquisition of a financial form.
Consequently, money is a technical means of finance; on its basis, the amounts of income and expenses are determined, which determines the monetary dimension and the nature of finance.
Financial relations are part of monetary relations; their sphere is already monetary relations.
The difference between finance and money is that financial relations always have a connection with the formation of monetary income and savings, which acquire a specific form of financial resources.
Credit is especially closely connected with money, and this connection is increasingly intensified as social production develops and economic relations become more complicated. However, credit differs from the category of money (Table 2.2).
Credit differs from money (as money) in the following ways:
- - they have a different composition of subjects - carriers, respectively, of monetary and credit relations: in the first case they are the seller and the buyer, in the second - the lender and the borrower, who may not coincide;
- - they have a different nature of the movement of value: in purely monetary relations there is a counter, equivalent movement of two different forms of value - commodity and monetary, and in credit relations - an unequal movement of value in monetary or commodity form;
- - they have different social purposes in the process of reproduction. Money is intended to ensure the realization of consumer value and bring it to the end consumer. They are also a means of accumulating realized value. The loan is intended to satisfy the temporary needs for additional funds of some economic entities and to facilitate the profitable placement of available funds for others. Even if the loan is carried out in monetary form, its inherent purpose does not change. And vice versa, if a loan (instead of money) ensures the delivery of the produced value to the final consumer (sale of goods with deferred payment), it does not replace money in the realization of this value: when the loan matures, only money can provide an equivalent payment for the goods, although it acts it is in the form of repaying the debt of Vovchak O.D. Credit and banking: textbook. allowance - Rostov-on-Don: Phoenix, 2010. - 421 p.;
- -- credit for the area of use is a “narrower” category than money. Money serves the sale of all GDP (except barter), distribution and redistribution of its value, and credit serves the movement of only part of GDP in the process of reproduction. Therefore, participants in monetary relations are all legal entities and individuals of the society, and in credit relations - only a certain part of them;
- - the movement of money from one economic entity to another (in non-credit relations) is always accompanied by a change in the owner of the corresponding value represented by money: ownership of money passes from the payer to the recipient. When a credit transfer of value occurs, the creditor always remains its owner. Even when selling goods on credit, the seller retains ownership of them, which is confirmed by the return of the cost when the buyer repays the debt.
So, credit and money are two independent economic categories, each of which has its own specific purpose, scope of use and nature of the movement of value.
There are significant differences between credit and finance. Unlike credit, finance is formed in the process of value distribution, while credit is formed in the process of redistribution. The movement of value in financial relations is associated with a change of ownership, is not repayable and paid, and is determined primarily by non-market, administrative-volitional factors. Finance and credit operate primarily in parallel, in separate economic segments, complementing rather than replacing each other. And even in cases where finance and credit are used in the same economic segment, they are not depersonalized, but retain their specific specificity Logutova T.G. Money and credit: lecture notes. M., 2009..
For example, in the execution of the state budget, both purely financial relations (taxes and budget financing) and credit relations (government loans) can be used. However, if financial relations are largely completed after the end of the budget year, then credit relations will continue until the state repays the entire amount of public debt associated with the formation of a specific budget.
Credit also differs significantly from trade, first of all, in the unequal movement of value during lending. In trade, the movement of value is carried out on an equivalent basis. At the same time, credit and trade are also closely intertwined: trade is increasingly carried out on credit, and credit is organized on the principles of trading in debt obligations.
01/29/2014Looking for Rockefeller inclinations in yourself or developing them is an extremely popular activity today. The Internet space and the shelves of bookstores are replete with all sorts of recommendations for achieving material wealth, and in almost every alley a personal consultant is waiting, ready to reveal to you all the secrets of achieving financial well-being for a nominal fee. But ask, for example, passers-by, what is finance? Surely you will hear the answer “money”. Sometimes it’s also “capital”. Quite logical. These definitions, once successfully put into use, are understandable to everyone and therefore convenient in everyday communication. You don’t need to look far for examples: phrases like “George Soros is a financial tycoon” or “George Soros has amassed capital” are enough, and everyone instantly understands that we are talking about the wealth of a native of Budapest, who worked as a laborer when he was a laborer. And when they complain that there are problems with finances, that finances sing romances, they also mean money. But for some reason it is considered correct to talk specifically about financial literacy or illiteracy, and not about money, and for some reason specialists in the field of finance are called financiers, and not, let’s say, moneymen, if you go into word-creativity. What's the difference?
Like a poet who jokingly combines the incongruous in rhyme, in colloquial speech you can play with concepts as much as you like, but directly in the world exchange rates, stock indices and others economic phenomena Whether you like it or not, each object or process instantly acquires a strictly defined classical form, scientific conservatism and an official “passport” name. Same with “finance” and “money”. Of course, you don’t have to be puzzled by thinking about it and don’t find out the essence, but if you don’t understand how electric current flows through the wires, you can get a shock - sometimes quite disorganizing. Of course, you can not touch the wires, bypass them and from time to time call a specialist to work with them, by the way, paying him for the service along the way. But you can live peacefully with electricity or even subjugate it - it’s enough to understand the laws by which it operates. In a word, everything is like in the financial world: if you don’t know how to manage, you pay specialists; If you try to work on your own, but without understanding, you risk being knocked out. Freedom of choice in its purest form. To understand the differences and similarities between money and finance, let’s imagine, for example, an apple tree. Even better - a lot of apple trees. The subject for comparison would seem strange, but very illustrative. So, apple trees with wonderful, fragrant apples grow in your garden. But you don’t have pear trees, but you really want pears. But through the fence you see spreading branches with treasured fruits in the neighbor’s garden. And here's the bad luck - for some reason you don't have the money to go to your neighbor, buy pears and, in the end, stop suffering. What will you do? Most likely, invite your neighbor to exchange: he gives you pears, you give him apples. If your neighbor has a need for apples, or he simply takes pity on you, then, most likely, your “adventure” will succeed, for which we congratulate you. Oh yes. At the beginning, we did not mention that you recently purchased the garden, and there are no trees there except apple trees. And at this time, other neighbors’ plums are ripening - they turn dark, thick blue in the sun, and fall down under the weight of the juicy pulp. You could definitely use them for a good jam. And you act according to the proven scheme - again you offer apples, receiving plums in exchange. What do we have as a result? As a result, we get an example of the simplest natural exchange with elements of monetary circulation. “Where is the money here?” you ask. Apples acted as money. Moreover, if in the first case they were exclusively a single object of exchange, then in the first and second cases they were universal, which is one of the defining characteristics of money. The universality is explained by the fact that the apples you offered were accepted as payment by both the first and second neighbors. A similar system of commodity-money relations operated in the early stages of human development. The emergence of money is traditionally associated with the social division of labor and the development of exchange, which our primitive ancestors carried out according to a scheme similar to your example. That is, in the early stages of the development of exchange, the commodity (= product) most in demand in a given area became the universal equivalent (= money). Remember how school history teachers talked about salt, grain, animal skins, shells and stones, which people exchanged for the products they needed. Then all these, strange in our opinion, objects absolutely fully played the role of money. However, time passed, representatives of different tribes developed new territories, entered into dialogue with local population . And here, too, it was necessary to exchange products. But how, when the “currencies” are so different? This is the same as you bringing your neighbor apples in exchange for pears, but he doesn’t need them - he has his own huge harvest of apples this year. It was necessary to create a fundamentally new, common for all, instrument of exchange. Metal (gold, silver, copper) came to the rescue, from which the prototypes of modern coins were made, replacing all the “money” that existed before. And then off we go: treasury bills (aka paper money), bills, banknotes, checks, electronic money... The progress of human civilization was accompanied by progress in the world of money. Of course, this is the most simplified and accelerated version of their historical development, which does not pretend to be scientific. Accurate facts, figures, details of the appearance, formation and operation of money can always be found in any finance textbook. And, actually, about finances... In order not to get confused in the explanations at the initial stage, we will use scientific interpretations. The most accurate definition of finance is considered to be the following: “Finance represents economic relations associated with the formation, distribution and use of centralized and decentralized funds of funds in order to perform the functions and tasks of the state and ensure conditions for expanded reproduction.” This opinion is shared not only by L.A. Drobozina, to whose words we turn, but this does not mean the only possible definition of finance. In fact, they have a lot of characteristics, but the phrase we mentioned explains the essence most briefly and succinctly. Finance, relatively speaking, is targeted manipulation of money. But this is not just manipulation of the exchange, but something else. Let’s fantasize again and imagine that money and even the concept of it don’t exist yet. Once again we will return to our apples. Suppose people find out that apples can be successfully exchanged not only for plums and pears, but for anything - as was the case with various items among our ancestors. As a result, apples become a single instrument of exchange. And everyone needs them, but not everyone has enough of them. A powerful structure is needed that could provide apples for everyone. The state becomes such a structure. It creates a special fund of apples, which is supposed to be replenished by confiscating part of these fruits from their owners (modern taxes). It also distributes apples among citizens, while monitoring the balance in distribution. As you can see, all conditions in determining finance are met. Apples again acted as money, a universal instrument of exchange that formed finance - relationships, economic relations between their owners. Of course, in such a context it is possible to talk about the finances of the organization and even the finances of the family. Another thing is that their definition through a demonstration of the work of the state is more clear and gives a broader understanding. But in any of the situations under consideration, money will act as the basis, and finance as the superstructure. Thus, money is the brainchild of the primitive communal system, when there was direct exchange; finance is the result of development state foundations, when large-scale process regulation was required. This is the generally accepted norm of definitions. So financiers are called financiers because they work not just with money, but with all the relationships that are based on money turnover. In other words, returning to another comparison of ours: money is electric current, finance is wires, economic relations between the owners of money are a manifestation of the work of electric current, depending on many conditions. But if you are still comfortable calling money finance, then in conversation No one bothers you with your friends, but remember that, for example, brokers may misunderstand you. And why? Because in the professional world money has completely different synonyms. We will continue to talk about this next time. Summary: Functions of money:
- measure of value;
- medium of exchange;
- instrument of payment;
- means of storage.
- distribution;
- control;
- Regulatory and stabilizing functions are also distinguished.
This text in the “School of Financial Literacy” section is not official educational material, is aimed at a basic explanation of terms and cannot be used as a scientific interpretation.
Image source: