Finance has long been the usual part of the life of every person. They allow you to acquire the necessary goods and services, pay bills. In this case, the functions of money, their properties and species are not known to everyone. Consider in more detail what they understand the term "money" and what features they possess.
Definition of the concept of "Money"
Simple words "money" - a generally accepted measure of value and a universal exchange (payment). State oblige Take them as payment (laws of FZ No. 86, Civil Code of the Russian Federation Article 18). A brief definition of the concept in the economy is based on Marx, these are paper, metal or electronic signs that perform a measure of value when making purchase and sale transactions that perform the role of a universal and universal equivalent. They express the cost of absolutely all goods and services.
Cash exchange for any goods or services, determine their value in national currency. This allows us to evaluate the objects of different categories, for example, when exchanging. The money is also allowed to assess the work of specialists of various classes and regions, as they are a universal reward to work.
According to Marx, the value of the goods is determined by the qualifications of specialists who produced it. Labor and time costs are taken into account. For example, the production of a car by highly professional employees is more expensive than "handicraft" manufacturers. In the first case, time leaves more, and the qualification provides impeccable quality. All this directly affects the final price: the more invested forces and works, the more expensive products.
The universal means of exchange can perform highly liquid goods, for example, by agreement the car exchanges for a cottage or another subject. But in contrast to the money, the goods at a certain point go out of circulation. In addition, it is determined at the legislative level that only money is a permitted payment facility.
At the same time, finance is impersonal - paper banknotes (Bank of Russia tickets) and coins are not registered, and I can not belong only to one person. In other words, the same bill is the property of a citizen as long as he has. But to prove that she is it that is difficult. Therefore, finding money on the street, people have the right to assign them, but only in cases where the situation does not borders with fraud or theft.
Cashs have three main forms:
- paper (Read more :);
- metal;
- electronic or virtual (optional material :).
If you deepen into terminology, then money, in particular paper and metal, is only the bank of the Bank of Russia (or the Central Bank of another state). Their value is fully or partially provided with gold or gold-currency stocks of the state and its financial condition as a whole. They can be stored in cash, on the hands of the owner, and freely translated into non-cash, by entering into a payment terminal, an ATM, bank cashier. Thus, the value of finances give the obligations of the state, and they themselves are only a nominal equivalent.
Key properties of finance
Cash possess a number of persistent properties:
- Portability - small, and large nominal nominal sizes are imprisoned.
- Review. A special shape and color allows you to quickly determine what it is for the subject, its nominal value.
- Safety. Money is protected from fakes and unauthorized change of nominal.
- Uniformity. Separate copies cannot have their own marks or differences - all banknotes are similar similar, and in the context of the nominal - identical, differ only in the sequence number and year of issue.
- Pasteability. Finance can be stored for a long time without losing the nominal value, physical properties.
- Discussion or united. Money is easy to exchange or combine, thanks to a clear nominal and high liquidity. At the same time, they do not lose other properties and functions.
Types of money
Historically allocate 4 main types of funds:
- commodity;
- credit;
- fiat;
- secured.
There is also the concept of "valid money", that is, funds provided by gold or other material values. Their nominal fully corresponds to the cost of providing, for example, the metal price from which the coin is made. In the modern world, financial systems are built on fiat money, as the Golden Standard is canceled.
In economic theory there are three more types of money:
- short;
- long;
- free.
They are not used to ordinary life, as they have highly specialized definitions.
Commodity money
Commodity money (real, natural, valid) is a highly liquid or valuable product, in demand by the population. These can be coins cast from precious metals (gold, silver, bronze, platinum), having a comparable nominal. Nowadays, such a form of finance contradicts the Russian monetary system, but it is the commodity money that is its founder.
The story knows examples when cattle, grain, alcohol played in the role of commercial money. In earlier times, various finance tribes replaced seashells, arrows tips. During certain years, iron nails were demanded in the place of small coins in Europe.
In 2019, in Russia, as well as other developed countries, commodity money is practically not found, as people need to be in universal payments. The absence of a pronounced deficit allows you to exchange coins and banknotes for any goods and services at a convenient moment.
Secured money
Secured money is also called representative or exchange. They are certificates or other signs that give the owner the right to get a certain amount of goods. For example, in the ancient Sumer in their roles protruded the figurines of sheep or goats, which could be exchanged for "live goods".
Speaking easier, these are representatives of commodity money (demanded goods recognized by a universal exchange). Later, with the development of the financial system, the money was provided by the precious metals, of which were produced. The valuable metal does not lose cost even when smearing, for example, a decoration can be made from the coin.
Cancellation of the Golden Standard excluded secured money from appeal to the territory of the Russian Federation and other countries. Golden or gold-currency margins can be 99% or 1% of the total weight of the means in circulation.
Fiat funds
Fitate money is the banknotes familiar in the modern world (Bank of Russia tickets) adopted by the state to pay tax deductions and recognized by the legitimate means of payment. It is important that they do not have independent value, and the cost of making are at times lower than the nominal. Fitate money is also called other terms - unsecured, decreated, paper, symbolic, unreal, maternity, because without guarantees of the government are only the result of paper production.
Non-cash or banking (electronic) money also refer to fate. But the concept of non-cash means is conditionally, as it is not about money, but about moneyless calculations, where cash is not involved. Account replenishment in any bank always requires cash through a cash register or an ATM.
This type of money includes funds recognized by the state at the official level. Therefore, goods or other items that have value, they do not belong to them. Even if we are talking about securities, traveler checks, products made of precious metals.
The real cost of fate money is measured exclusively by purchasing power. That is, the number of goods and services to which they can be exchanged, the possibility of paying taxes. The misunderstanding of this fact develops the "monetary illusion" when a person appreciates its financial condition by one sign - the nominal value of banknotes and coins.
Credit money
As a loan money, as a rule, certain debt obligations are a bank check, bill. Shares and bonds to this term do not relate, as it cannot be used as a means of means. Credit funds are exchanged for goods and services in accordance with the specified nominal value (bill) or registered amount (check). Regardless of the form, their value depends on the national currency, so they are also subject to inflation.
"Long" and "short" money
The two terms are more about investment. Under the "short" money, short-term deposits that individuals are issued in a banking institution. The period of ownership of the depositor means does not exceed 12 months. The total volume of such contributions is the short-term liquidity indicator.
"Long" have the same definition, but for such contributions a longer period is characterized - more than 1 year. The more deposit in the bank, the higher the long-term liquidity.
Free finance
Various theories related to funds made not only K. Marks, but also other scientists. So, the German actor Silvio Gezel introduced the concept of "free money." These are financial resources free of interest and used only to exchange them or as a measure of determination of value.
A vivid example of free money is the "Shaimiurati", issued in Bashkortostan, in the village of Shaimuratovo, after the financial crisis of 2008. In fact, this is not money, but commodity coupons, exchanged for various types of goods in stores according to the nominal. They were issued instead of wages, later, they were reissued to the loyalty program and began to constitute an analogue of gift certificates.
Coupons or certificates are deprived of many cash functions - their accumulation will not bring wealth, they cannot be put on the bank account. Moreover, over time they are depreciated, it stimulates the owner to implement the ticket faster and get the goods.
The use of the theory of GEZEL in practice in 1932 confirmed the fact that free money ways to raise the economy, reduce the percentage of unemployment. At the same time, free money is the threat of a monopoly of the Central Bank.
Functions and essence of money
Cash performs several functions, one of the key is the measure of value. Each product or service is evaluated, taking into account the costs produced or rendering and measured in rubles. Thus, it is possible to compile correct assessment of the value of heterogeneous objects, works, services.
The second basic function of finance is a means of circulation. Money is highly eliminated and instantly exchanged for any goods and services necessary for a person. The exchange of goods for goods is beneficial only in the situation of acute deficit, when any amount of funds will not allow to purchase the desired subject.
Also, the main functions include:
- Instrument of payment. This function has received an independent value due to price instability when paying the debt with its subsequent repayment. Thus, the debt on the loan is assigned to the contract, when the rates change the amount that must be returned, does not change.
- Means of accumulation. Financial savings that are temporarily not involved in the turnover and are stored in cash or cashless form make it possible to transfer their purchasing power to future periods. At the same time, it is necessary to take into account the impact of inflation. In the modern world, a stable depreciation of money completely eliminates this function, since the purchasing power is reduced from every day.
There is also a concept as "global money", they fulfill the function of the payment between states. In former times, precious metals were used, in the modern world, they were replaced by reserve currencies. But direct payments are made by any currencies, if held through special platforms.
The latter money function is a means of forming wealth. When the amount of funds received is higher than the person spends, a certain supply is created. Unlike accumulation, it does not have a specific goal and is formed from excess. In the modern world, the head of fate money, having a low cost, so the role of wealth means negligible. People may have a lot of bills in a safe or account, but since they are not secured, then inflation is subjected to, and when they default, states are converted into ordinary paper or numbers.
It is important to understand that, despite its value, money is only a means of measuring the cost or receipt of goods, services, other benefits of civilization. Their essence, species and forms are a significant element of economic and market systems of countries and international relations.
· Functions
Money functions are inherent stability and stability, they are little variable, but the role of money may well be a change.
Money manifest itself through their functions. These functions themselves are that money can act as:
· Payment tools.
Money here is used when working with debts - for their payment and when they are registered. They also have a specific movement scheme:
Goods - urgent debt obligation - money.
With this exchange there is no oncoming movement of money and the goods, because the repayment of the debt is the final link in the process of sale. A similar role is played by money expressing any economic indicators.
· Common measurement.
Here the money is measured by the cost of all goods as a cash equivalent. However, there is still a factor affecting the conditions for the formation of the price - this is a work expended on the production of goods exposed to evaluation.
Money with cost becomes the measure of the cost of goods.
Cost Dictionary. - M.: Infra-M, Publisher "All World". J. Black. General editors: D.E.N. Sadden I.M .. 2000. - This is the cost of the resources used to produce any product or service. Costs are measured in physical or value, as a rule, monetary, calculus. Alternative costs measure the cost of products, from which they refused for the production of this product. The total cost includes permanent or overhead and variable costs.
The cost of goods expressed in money is called price.
· Means of accumulation.
Money, being a measure of the value of all goods and the universal equivalent, become the embodiment of wealth, from where the tendency to their accumulation and savings appears, that is, accumulation.
Accumulation Modern encyclopedia. 2000.- This is the accumulation, the transformation of the part of the profits into capital.
Money performing this feature is a monetary reserve that the entrepreneur is very unprofitable to store, leaving "without a case." That is why this money is allowed to receive profits, for example, make contribution to the bank and receive interest from this contribution.
The peculiarity of this feature is that the money as a means of savings should be able to maintain its cost at least for a while, as well as this money should be real.
· Tools.
The peculiarity of this feature is that the money as a means of appeal during the turnover of goods should be present really. The money here play the role of an intermediary when exchanging goods, so that the formula of the commercial circulation looks like this:
Goods - money - goods.
Money continuously remains in the process of exchange, and this contributes to the fact that the producer is able to overcome individual and spatial boundaries characteristic of direct exchange. And, therefore, this money contribute to the development of commodity exchange.
The process of commercial circulation involves buying goods and its sale as two independent facts that share time and space. This may well create a crisis situation in that it is possible to disrupt the exchange, that is, the contradictions can ultimately be intensified.
Money as a means of circulation There are some features that are to be in circulation there must be a real presence of money and in the mumbling of their participation in exchange. The function of the treatment can also be performed and paper and credit options for money. And due to the fact that the dominant position in the modern world was credit money, then the Formula of the goods - money - the goods are modified and looks like this:
Money - product - money,
Since they are serviced already shopping, industrial, and cash capital.
In addition to these four functions, there is another one - function of world moneythat is, an international payment for monetary operations between countries. Until the 20th century, the role of world money was played by noble metals measuring ingots, and sometimes precious stones. In the modern world, this role got several national currencies at once, such as the US dollar, pound sterling and euros, but some economic entities can also use other currencies. The function of world money is divided as three parts:
1. International payment facility.
Money advocate for calculation on international balances.
2. International purchasing agent.
Money serves as a purchasing means in violation of the balance of the exchange of goods and services between countries. In this case, payment is made in cash.
3. Universal incarnation of public wealth.
Money is used to provide loans by one country by another country, as well as when the reparations are paid to the defeated country. In this case, wealth is moving from one country to another.
· Types of money.
All modern monetary systems today are based on symbolic money, but four types of money historically allocated:
- 1. Commodity.
- 2. Fiat (symbolic).
- 3. Credit.
- 4. Secured.
Commodity money(that is, natural, real, real) is money, the role of which is the goods possessing its own value and utility. An example can serve as a gold coin, which can be melted into jewelry. Commodity money was used at the initial stages of the monetary system, when the main principle of commodity relations was a barter exchange. That is, the equivalent of money in this form of money is the sweat, spices, pearls, coins from platinum, gold, silver or bronze.
Fitate money(That is, paper, unreal) is money that has no cost. They are value and perform the functions of money in the country where they are used, and are a legitimate payment, but their cost is disproportioned with a par. This type of money is banknotes, electronic and cashless money.
Electronic money Dictionary-directory. - M.: University and school. L. P. Kurakov, V. L. Kurakov, A. L. Kurakov. 2004.-Payment agents presented and disabled in electronic form, which guarantees the anonymity of the Parties participating in the calculations: non-cash settlements between sellers and buyers, banks and their clients, carried out through a computer network, communication systems with the use of information coding tools and its automatic Processing.
Credit money - These are the right demands in the future with respect to individuals or legal entities that can be used to pay for goods and services or their own debts. Payment of such debts is usually produced in a certain period of time, but there are still different options. The risk of credit money is that there is the possibility of non-fulfillment of the requirement. Examples of this type of money are checks, bonds, as well as varieties of electronic money.
Secured money - This is money, as a rule, as a rule, certificates that can be exchanged for a fixed number of any product or commodity, such as gold, silver. In fact, secured money is representatives of commodity money. Initially, any banknote the cost of commodity money (precious metals) was laid, so that it was quite possible to exchange, for example, to the ingot. However, today banknotes are no longer guaranteed to exchange for fixed goods and turned into symbolic money.
Money is a special kind of product that fulfills the role of the universal equivalent.
Universal equivalent means the body's ability to exchange to any other product.
The essence of money is revealed in their functions. Usually allocate the following main functions of money:
- means of circulation;
- the measure of value;
- instrument of payment;
- accumulation means;
- world money.
Performing a function of the means of circulation, the money acts as a submern to the exchange of goods and services, ensure the appeal of goods on the market. As a means of exchanging money allow society to avoid inconvenience of barter exchange. In this case, the money is not delayed long in the hands of buyers and sellers and go from hand to hand, performing this function fleetingly. This circumstance ultimately led to the replacement of full-fledged money in defective money, cost symbols (paper money).
Money in the function of the cost measure allow us to express the cost of goods and services in monetary units (just as the distance is measured in meters or kilometers). The cost of things expressed in money is its price. To determine the price of goods, the money itself is not required, since the seller of goods sets its price mentally (Ideally expresses the cost in money). The expression of the cost of goods in money occurs before the purchase and sale of goods are made.
Money as a means of payment. This function is carried out in the case of selling goods with a delay of payment (selling goods on credit), wages payments, taxes, rental payments. From the money function as a payment tools arise credit money - notes, banknotes, checks, credit cards, electronic money. In this form, they act when paying all sorts of financial obligations.
In addition to the fact that money is the means of payment, they act as a means of savings and accumulation. The possibility and need to accumulate money arise as a result of separation of acts of sale from purchase, i.e. If the purchase did not follow the purchase of goods, then the seller remains in their hands money that can function in the form of value from this time. The functions of such savings that are delayed consumption are based on the fact that this money has and will have the same value and now, in the future. However, the real fulfillment of the money of this function has its own limitations. If the nominal value of the money is fixed, then their real cost can change. In particular, in the conditions of inflation, the real value of money sharply falls th preservation of wealth in the form of money loses economic meaning. Therefore, other assets are used to preserve value, in addition to money, other assets are used - securities, real estate, jewelry, etc.
In addition to the role played by money in the national economy, they perform important functions in international business operations and act as global money. In the world market, the function of world money today does not perform gold, and the currency is a monetary unit used to measure the value of the goods.
"Money and their functions" and others
From the article you will learn what money, their functions, shapes and types. As well as the essence of money and what is the story of their occurrence
Hello, dear friends! In touch, the entrepreneur Alexander Berezhov.
Money was very tightly entered into the life of every person. Every day, each of us is somehow facing them, but not everyone knows what the concept of "money" means.
This topic is always very interesting and attracts the attention of many people, so let's figure it out in this concept that seems to be so simple.
In conclusion, I will tell you how quickly you can make money - I will share my own experience.
So, ahead!
1. What is money - a complete review of the concept and history of money
The topic of money according to sociologists today is the most popular among people, ahead of even "love".
But this economic concept is not taught at school, the money is not accepted about the family table and since childhood, our knowledge of the main economic resource remains mildly foggy.
In this article, I will tell about the money with simple words about money and even how quickly you can earn money - most people dream about it? - Did the dear reader?!
Money is a fundamental economic concept. Encyclopedic determination of money sounds as follows:
Money - This is a specific product with a maximum liquidity indicator.
Its specificity is that he does not have consumer value in itself. In this "product" you can not live like in the house, it cannot be eaten, or carry on the body like clothes.
But housing, food and clothing can be easily bought for money - a universal exchange tool.
In other words, this is a product that is needed to everyone and each and preferably in the maximum possible quantities.
Money has certain characteristics:
- speakers the tool for the exchange of goods and services;
- are a universal equivalent of value (cost) of any objects of trade;
- there are measure of labor assessment of manufacturers of material values \u200b\u200band suppliers of intangible services.
Historically, the emergence of money was due to the gradual development of economic relations since ancient times.
At first, exchange relations between the tribes were random, since the volume of the produced goods was small.
Then the number of products produced began to grow, surplus appeared, and the exchange was regular.
But since the exchange of goods always needs to determine the objective value of trade facilities, the need for a specific and simultaneously universal appeal means, which would allow metabolic processes with minimal costs.
In other words, I needed a single equivalent: the money was the same equivalent.
At first, the role of the payment agent was performed by a specific product - for example, animal skins, rice, sinks, salt, household items. A little later, the function of a single equivalent began to perform livestock, but such a system of calculations had certain inconveniences, since the animals needed feeding and content.
At the next level of development, precious metals began to play the role of money. By nature, they are most suitable for determining a single means of circulation, as they have homogeneity, objective value and a divisibility on an arbitrary number of parts.
A piece of gold or silver of a certain weight can be divided into the same parts - just as coins arose. Even later, the coins themselves were replaced by paper equivalent for the comfort and safety of gold.
The first paper banknotes arose in China in the 12th century. In Russia, the release of paper appliances began in 1769 by order of Empress Catherine II.
In those days, the system operated "Gold Standard" : Money could always be exchanged for gold.
The most important quality of money - their maximum (absolute) liquidity *.
Liquidity - Measure, determining the rate of exchange of a commercial asset for cash. The value of any product or services can be expressed in cash equivalent.
At the same time, money is subject to the subject of a public contract: all participants in the society are confident in unconditional liquidity of money and without concerns exchange objectively valuable goods on monetary signs that have subjective value.
Each country has a certain monetary system, the structural unit of which is a monetary sign.
2. Money theory - species, essence and money properties
Distinguish several types of money:
- commodity (metallic or full-fledged);
- paper;
- credit.
Let's look at every kind of more.
Commodity money- It means valid. This type of money equivalent is characterized by the correspondence of the nominal value of the present value of the material from which they are produced.
Modern copper, silver and gold money have a standard mass and appearance installed at the state level.
Paper money - Equivalent of real money. Sometimes they are also called "defective". The nominal value of such money is obviously higher than real.
The right to produce paper money is exclusively a state: the issue of money by individuals, commercial organizations and other structures is considered illegal. Paper treatments usually have reliable fake protection.
The difference between the nominal value of money and the cost of their production is emisy income of the state treasury.
Money printed on paper is issued to eliminate budget deficit. They are endowed with value, which is determined by objective and subjective circumstances.
Paper calculation tools have certain economic properties:
- the objective value of money is not sustainable and is determined by the course;
- the issue of money is not determined by the needs of economic turnover;
- the removal mechanism from the appeal of extra money is not regulated.
In practice, this means the following: Paper money at any time can depreciate. This is due to the excessive issue of bills, the loss of the confidence of the people to the government, unfavorable economic status in the country, international factors.
Credit money - These are financial debts, commitments, concluded agreements, posted orders, any other services that need payment. The meaning of the loan is that the amount that the lender receives is returned, returns back to the percentage.
There are several variations of credit money.:
- Bill.Valuable paper composed of strictly mounted form. The bill gives its owner (bill holder) to receive money from the debtor on the basis of the contract.
- Banknote.It is a monetary sign that has a material form. Banknotes produces a state, most often they are made of special paper and metal, less often from plastic. Previously, their tissues were manufactured.
- Receipt.Security, which obliges to pay the amount specified in the check, upon presentation of an organization's check, which is authorized to cash out.
- Bonds.Long-term debt securities, the owner who has the right to receive money through it after a certain period, also often on the bonds of its holders provides for interest payments. Bonds are issued by governments and commercial companies.
- Electronic money.This is a digital (electronic) equivalent of ordinary money - paper and metal. They are stored in payment systems accounts and in essence perform the same functions as the usual, are used to pay for goods and services by non-cash.
The lending system allows consumers to purchase goods for which they cannot pay at the moment. Credit money acts as a relevant means of multiplying capital for companies that this loan is issued.
Theoretically, credit funds should be value equal to paper money, but in practice their real value is slightly lower. Today, through credit capital, most calculations are made between sellers and buyers of services on the Internet.
More vividly types of money can be studied by the example of this scheme:
The most important properties of money:
- Liquidity - the opportunity at any time to exchange them for material goods.
- Strength - Resistance to external influences.
- Multiplicity - have the ability to change to a certain integer value.
- Security - They have protection from fakes in the form of watermarks, individual numbers, metal strips, special printing methods and other methods of uniqueization.
The essence of money is that they act as an obligatory active element and an integral part of the economic structure of society. Money is a way to support relations between the participants of the reproduction process and the distribution of material goods.
3. Money functions - Top 6 basic functions
As the civilization and improvement of relations between participants in trade processes, the universal equivalent functions were gradually multiplied by the universal equivalent.
At first, the money performed exceptionally the function of the cost meter, that is, were the universal measure of the value of all goods. Later they acquired many other social tasks, which will be described below in all details.
Function 1. Money as a measure of cost
This function is formed during pricing and determines the cost of the product measured by money. Through the universal equivalent, a quantitative measurement of various goods between themselves is carried out.
Digital value expression is called price. This concept is another key moment of modern economic theory. The price is formed in accordance with the terms of the production and cost of resources. We have written in detail in one of the previous articles.
For prices can be compared, they must be brought to a certain scale. As weight is measured in kilograms, the distance is in meters and the cost is determined by money. The introduction into the practice of universal equivalent eliminated the need for a complex calculation of the mutual value of goods and goods produced.
In the modern economy, the price is calculated individually for each product, respectively, costs for its production and other objective conditions.
The task of the main means of calculation performs the country's monetary unit. Sometimes in the conditions of the instability of the national economy, a foreign currency is served by an additional unit of calculations.
Function 2. as a purchasing agent
The purchasing task of money is also pretty early. Within the framework of this function, financial resources are serviced by the trade process itself - buying and selling.
In this process, the money acts as a means of circulation: they support the constant process of turnover (securities can also perform in the form of goods). The function contributes to the process of transformation of production (including intellectual) in money.
During sales, there is often a time interval between the transfer of the product and receiving payment for it. In such cases, the seller can provide a certain delay to the buyer. It is at this stage that an opportunity appears to emerge such an economic concept as a loan.
Function 3. as a means of payment
Further development of the structure of the economy led to the emergence of another function. Finance has become a full-fledged payment tool. Today, money can be used when paying debts, taxes, loans.
The use of finance in the form of an intermediary makes it possible to use the independent value of the universal equivalent of calculations.
for example
When taking a loan in a bank, no movement of goods does not occur, only financial movement is carried out, while the money itself continues to maintain their own value.
Often, enterprising people speculate on the payment functions of money and receive good profits, for example, open their own bank or engage in trade in financial markets.
Function 4. Distribution function
The distribution function of money is as follows: one subject of economic relations transmits to another specific monetary amount without receiving reimbursement.
This monetary function is the basis of the functioning of any state budget and the distribution of income of commercial enterprises. All major socio-economic global and local systems are based on the distribution function.
Function 5. as a means of savings and accumulation
Money can be used not just as a means of circulation, but also as a basis for self-species of material wealth. In other words, money can be saved in the form of savings, pass by inheritance, give, multiply, invest in business, technology and promising projects.
This function determines the entire investment process in the economy, the development of banking systems, stock, investment, insurance and other financial markets, as well as economic growth of a separate country. Money is capable of servicing both national economic ties and world economy.
In the context of economic globalization, the currency component of money plays a leading role. In world practice, examples of creating successful interethnic currencies are known. One of them - the euro - has stable demand to this day.
Money is an objective value of value, a worker asset.
Remember that the real cost of savings is determined by the level of their liquidity.
In an economic model, which is not subject to inflation, the purchasing properties of monetary signs are practically not changed over time. On the same amount you can purchase a fixed volume of goods and three months later, and in ten years.
However, in conditions of pronounced inflation, money lose their purchasing potential over time. Accumulates such money in a stable increase in prices meaningless.
In such situations, the function of wealth and the accumulation facility is not a national currency, but the monetary signs of another state with a more stable economy.
There are other financial assets - secured by the commodity equivalent of shares and bonds bringing a stable income (dividends).
Function 6. As a measure of international exchange
In the global economy, money performs the task of currency exchange, create a balance of payments and form the current currency rate. The monetary exchange between different countries is necessary for foreign trade relations, international loans, assisting an external partner.
Money functions as a common purchasing agent and the object of materialization of global wealth. World money is usually measured in reserve currencies - currently this is the US dollar, euro, Japanese yen.
Direct international calculations are carried out in other currencies (by mutual agreement). Any currency theoretically performs the function of an international payment.
Let's look at the basic cash functions in the form of a comparative table:
№ Essence Features 1 The measure of value Determines the value of all goods Historically, the first money function 2 Buying Makes it possible to acquire any products / services Provides stable turnover 3 Instrument of payment Provides the opportunity to pay for debts 4 Distribution The basis for the occurrence of the credit system The basis of state financing 5 Savings tool Allows you to accumulate material benefits The objective value of savings depends on the state of the economy 6 Measurement measure Allows you to exchange money for any other product and the currency of another state. The exchange rate depends on the state of the internal economy of the state As can be seen from the table, money has several basic functions that have their own specifics.
4. What is the monetary system?
We will analyze this important economic concept.
Monetary system - Historically and economically enchanted by law, the device of financial treatment in the state structure.
The structure is based on a monetary sign - an internal national currency. Historically, there existed 2 types of financial systems - metal circulation and changes Dennakov.
Metal systems are such systems in which state administration authorities legally assign the function of money equivalent to one or two noble metals. Paper banknotes may also be present in circulation - they are freely converted into gold or silver.
At the end of the 20th century, golden monometallism has ceased to be an urgent monetary structure. The world's money became gold bars, but special borrowing rights (SPR). The leading position in currency transactions took the US dollar.
In addition, gold was performed: this precious metal lost the property of money, but still remained a public reserve for the acquisition of currencies and liquid goods from other countries.
Today, in any country in the world there is no metallic system as such. The main types of drugs in most states - banknotes, treasury tickets and exchange coins made of non-ferrous metals and alloys.
In the Russian Federation, the official monetary sign - the ruble. His course on other currencies is determined by the Central Bank: data is published daily in the media and on official network resources. On the territory of our country, along with "cash" are in circulation of non-cash finances - email equivalents, funds in accounts in credit firms and banks.
It was information swinging the theory of money. The next section of the article is devoted to practice, namely how to make money - today almost everyone is puzzled today.
5. How to make money - a brief instruction
Let's talk about the most intimate about earning money. Here I will share personal experience and give work schemes for earning.
Three faithful ways to earn the first money today
Just take and embarrass! And more about Tom, I already wrote earlier.
As the famous Russian entrepreneur said Vladimir Dovgan:
Think that you have such that you can give people to pay you for money for it.
If you speak any market value, then just appreciate your capabilities objectively and sell them. How can this be done, I described below.
Method 1. Provision of services
If you are more than 18 years old, then you probably have any knowledge and skills, unique skills that can be sold in the form of services.
For example, if you know how to draw, play a guitar, make crafts or teach foreign languages, find customers and earn your first money.
It can be done, even if you learn or run on hiring. Some seamless and profit from selling their skills in your pocket.
For example, I with my friend Vitaly provided services for the development of sites for entrepreneurs and organizations. We managed to work around million rubles.
Method for 2. Earn money online
In the age of information technology, only the lazy or far from the computer did not hear about earnings using the Internet.
In the network you can earn in the following ways:
- remote work and freelance;
- building a business on the Internet;
- sale of information and training.
Method 3. Resale products through the bulletin boards
This is really a quick and simple way to get the first money.
This is especially easy to do with the help of the site Avitu.ru. You can also read on our website. Moreover, you do not need to purchase goods or apply complex schemes.
More details, these and other ways are described in my popular article -, do not waste time and study these materials of our site heterbobur.ru
6. Conclusion
Let's sum up, friends.
Today you have learned about the essence and properties of money, they learned what functions they perform and what role they play in economic processes. I hope that my ways earning will also help get money in sufficient quantities.
I sincerely wish the information set forth in the article to grow and multiplying your personal well-being.
Dear readers, waiting for your comments, and personal observations! For our team, this is very important, thank you in advance!
With the advent of the first production between people, exchange began. But it was not always possible to find the right amount of product for this operation. Money is an equivalent that has become used when making exchange.
Money and History
Historically, the exact time of money appears is not defined. However, for the first time on the payment of the payment, silver is mentioned in Wednocks approximately 2500 to our era. After that, the metals began to serve as a means of payment. Later it was reflected in the appearance of coins.
The first money was distinguished by a great variety:
- Stone, which represented discs with a hole in the center. They differed in diameter and applied when exchanging goods, payment services.
- Metal - made of soft metals, such as copper, which were not used in the production of weapons.
- Salt - represented bars from salt and were used in some countries up to the 20th century.
- At certain times, served as a monetary measure. Even whole herds could be considered an equivalent in conducting economic transactions.
Money in the form of coins for the first time began to be used in the seventh century BC. They were plates made of metal of the wrong shape on which the drawing was depicted. It determined the cost of coins depending on weight.
For the first time, paper money was recorded in China in 910. Their production was possible thanks to advanced technologies in paper production.
The wider extension of the bills received after the invention of the Guttenberg printed machine in 1440. From now on, paper money is funds that are used in any transactions.
Theories of the emergence of money
Many economists attracted the issue of the origin of money. Economic theory allocates two directions in the origin of money:
- rationalistic theory;
- evolutionary theory.
According to the first, money is a product involved in agreements between people. They are created as a tool for sharing and turnover of goods. For the first time, such a concept was set out in the work of "Nikomakhova Ethics", written by Aristotle. The philosopher wrote about comparability of goods involved in the exchange, and offered to use a certain unit of measurement for this - a coin.
American economist Samuelson considered money as a social economic convention created artificially. According to this theory, any product endowed with certain functions and adopted in society can be money.
Evolutionary theory considers the emergence of money as an inevitable process, during which some objects were allocated. In the future, they took a special place in society.
The classics of the economic theory of Riccardo and Smith, and then Marx developed the idea that money was the goods and they appeared in the exchange process.
Essence of money
In modern society, money is special status. They are an integral part of economic relations. For people, money is good, that is, the opportunity to satisfy your needs.
The essence of money is reflected in their participation:
- In reproduction, distribution, consumption and exchange. Money is the basis for the development of trade relations, they change together with the development of metabolic processes.
- In the distribution of GNP, as well as the sale and sale of land and real estate. Money is a means of distribution of material values \u200b\u200bin society.
- In the establishment of the price. Money reflects the value of goods produced by man.
In addition to the singularities of the participation of funds in the life of society, these signs have two features:
- Serve equivalent with universal exchange of goods. This feature is reflected in direct exchange for any product. In contrast, in conditions of barter and other goods can be equivalents, but within the framework of mutual needs.
- Keep the cost of goods. It is money that is the best way to save it, because the costs of storage are reduced, and damage is prevented.
Money functions
In the context of the modern economy, money does not have their own value, but maintaining the exchange. This suggests that money is paper that is inherent.
Money functions reflect opportunities, features and role in economic life. Money act as:
- The measure of value. The function is implemented by setting the price of goods.
- Cash marks participate in the process of buying and selling goods. In this case, the calculation and transfer of goods is made at the same time.
- Instrument of payment. This feature is implemented during the payment of goods or services, paying taxes, providing and repaying loans, etc.
- Money that do not participate in the turn create accumulations.
- International Payment Tool (or World Money). This feature is reflected in the use of money for calculations between countries. What is money? The function of the global payment of the payment is performed by currencies supported by gold. For example, dollar, euro, Japanese yen, pound sterling, Canadian dollar, Swiss franc and Australian dollar.
Types of money
- Natural or real money. Often they are called valid. This category includes any products that can serve as equivalent when exchanging and money from precious metals. For example, such money is silver and gold coins, cattle or grain. The value of the nominal value of such money is equal to real.
- Symbolic money. These are the signs of the cost that replace natural money. This category includes credit and paper banknotes, as well as electronic money - digital analogs of coins and banknotes. They are higher than the real one.
In modern developed countries, non-cash payments and electronic money enjoyed the advantage. They have several advantages, among which it is possible to note the lack of costs for storage and transportation, as well as the impossibility of fake or loss.
Forecasts of leading economists suggest that in the future electronic money will dispense cash.
Allocate two forms of such money: smart cards and networks. The first is e-wallets, an analogue of a credit card, but without mediation through the bank. Network money is a software that provides the ability to translate funds in accordance with the needs of a person.
Distinctive features of money
In the process of evolution, money acquired not only certain properties, but also their own features. These include:
- compactness or portability is the convenience of money in moving and use;
- cost - money must be value, cheap or easily accessible goods cannot be money;
- number - money must have a quantitative value and the possibility of calculating;
- discussion - signs should be easily divisible to make payments of any kind;
- deficiency - the amount of money involved in circulation should be smaller than the demand for them, in a different way of money there will be a lot and will come inflation;
- acceptability is money-information payment that must be introduced by law.
Number of drawn signs
Money has a direct impact on the formation of the price of goods, work and services. Since money is the amount of cash that is in the hands of the population, and reserves of commercial banks, regulation of the amount of treated money supply is the main method of impact on the market economy.
Since each country should have a certain amount of money, which will correspond to the volume of production, trade and income, the amount of money drawn can be determined by the equality:
m * V \u003d P * T, where:
M is the amount of money involved in circulation;
V is the speed of turnover of one monetary unit;
P is the total price level;
T - the volume of trade transactions.
When there is such equality in the country, the price stability is ensured.
If MV< PT, то цены на товары, работы и услуги снижаются. Если mV > Pt, prices grow and inflation processes occur.
Based on this, the main condition for the optimal amount of money in circulation becomes the establishment of price stability.
Monetary aggregates
The money supply is divided depending on liquidity on monetary aggregates M0, M1, M2, M3:
- All types of money, which have a high degree of liquidity, are included in the M0 unit and include checks and m0 \u003d h + N.
- Supplement to the previous unit is M1, adding funds in bank accounts: M1 \u003d M0 + B.
- The next step that complements the previous ones is the means that they do not have absolute liquidity - deposits. These are bonds, notes: m2 \u003d M1 + V.
- The last unit contains state securities in its composition: M3 \u003d M2 + Central Bank.
Such division into aggregates allows the state to regulate the amount of money supply and control inflation.
Coefficient of monetization
The most important indicator for which one can judge the state of money supply is the monetization coefficient calculated by the formula:
Km \u003d m2 / GDP, where:
M2 - the corresponding monetary unit,
GDP is an index of an internal gross product.
The coefficient of monetization makes it possible to get an answer to the question of whether money is enough in the circulation. It can be judged on it, as far as GDP is provided with real money, in other words, how many money on the ruble is money.
In economically developed countries, this coefficient can reach 0.6, and in some close to 1. In Russia, such an indicator is slightly approaches 0.1.
