Finance, Credit, Investments – Economical Categories
Scientific functions in the theories of finances and credit, based on the requirements of the research girokonto schweiz item, are qualified to be many-sided and several-leveled.
The meaning of totality of the economic relations formed in the process of formation, distribution and usage of finances, as cash sources is widely spread. As an example, in “the general theory of finances” there are two definitions of finances:
This latest first appears to be a component of value of principal industrial funds, later it is transferred to the fee price of a prepared merchandise (that’s to the worth also) and after its realization, and it is set the depression fund. Its resource is taken into account before hand as a depression kind in the consistency of the ready products cost price.
First, financing overcome the limits of distribution and re-distribution service of the nationwide earnings, though this is a basic basis of finances. Also, formation and usage of the depreciation fund which will be the section of fiscal domain, goes not to the distribution and re-distribution of the national earnings (of just formed value within a year), but to the distribution of already developed worth.
1) “… Finances reflect economical connections, foundation of the funds of cash sources, in the process of distribution and re-distribution of nationwide receipts based on the distribution and utilization”. This definition is provided comparatively to the conditions of Capitalism, when money-commodity relations develop universal character;
2) “Finances represent the formation of centralized ad decentralized money sources, economical relations relatively with the distribution and usage, which serve for fulfillment of the state functions and obligations and also provision of the conditions of the widened further production”. This definition is brought without showing the environment of its own action. We share partially such explanation of finances and believe expedient to create some specification.
Finances exist in the country level as well as on the manufactures and Startseite divisions’ amount also, and in such conditions, when the most part of the produces are not state.
V. M. Rodionova makes an accent of finances, as distributing Klicken Sie auf diese Seite relations, when D. S. Moliakov underlines industrial foundation of finances.
In every discussed place there are:
1) expression of essence and phenomenon in the meaning of finances;
2) Distribution of finances as social product and also the worth of national revenue, definition of the distributions planned character, main aims of the market and economical relations, for servicing of which it’s used.
3) the definition of finances, as the method of the creation and usage of funds of cash sources in the level of happening.
If refuse the pre-position “socialistic” in the meaning of funds, we might say, that it nevertheless keeps actuality. We meet with such traditional definitions of finances, without an adjective “socialistic”, in the contemporary economical literature. We may give this kind of elucidation: “finances represent cash resources of production and usage, also cash relations appeared in the process of distributing values of formed economical product and national wealth for formation and further production of the cash incomes and savings of the economical subjects and state, rewarding of the workers and satisfaction of the social requests”. in this elucidation of finances like D. S. Moliakov and V. M. Rodionov’s definitions, following the traditional inheritance, we fulfill with the widening of the financial basis. They issue “distribution and redistribution of the value of created economical product, also the partial distribution of the value of national wealth”. This newest is quite actual, relatively to the entire process of privatization and the transition to privacy and is periodically used in practice in various countries, for instance, UK and France.
“Finances – are cash sources, financial resources, their creation and movement, distribution and redistribution, usage, also economical relations, which are conditioned by intercalculations between the economical subjects, movement of cash sources, money circulation and usage”.
In the manuals of the political economy we meet with all the following definitions of funds:
“The method of creation and use of essential funds of money resources for ensure socialistic widened additional generation represent exactly the finances of the socialistic society. And the totality of economic relations appeared between state, makes and organizations, divisions, regions and separate citizen in line with the movement of money funds make fiscal relations”.
As organizations’ve found, definitions of funds made by financiers and political economists don’t differ significantly.
We fulfill with absolutely innovational definitions of funds in Z. Body and R. Merton’s basis manuals. “Finance – it’s the science about the way the people lead spending ‘the deficit money assets and incomes in the certain amount of time. The monetary choices are defined by the expenses and incomes which are 1) separated in time, and 2) as a rule, it is impossible to consider them into account beforehand neither by those who get selections nor every other individual” .
These basic concepts and quantitative designs are used at every degree of getting financial choices, but in the most recent definition of funds, we meet with all the following doctrine of the monetary basis: main function of the funds is in the fulfillment of the individuals petitions; the subjects of economical actions of any kind (companies, additionally state organs of each degree) are directed towards executing this basic function.
For the aims of our monograph, it is important to evaluate well-known definitions about finances, credit and investment, to decide how and how much it’s feasible to incorporate the finances, investments and credit into the one absolute component.
Some researcher thing that credit is the consisting portion of finances, if it’s discussed from the position of essence and kind. The other, more numerous group shows, that an economic category of credit exists parallel to the economical category of finances, by which it underlines impossibility of the credit’s being in the consistency of finances.
N. K. Kuchukova underlined the independence of the category of credit and notes that it is only its “characteristic feature the turned movement of the value, which is not related with transmission of the loan opportunities together with the owners’ rights”.
N. D. Barkovski answers that functioning of money created an economical foundation for apportioning finances and credit as an independent category and gave rise to the credit and financial connections. He detected the Gnoseological roots of science in money and credit, as the scientific discipline about finances has business with all the the investigation of such economic connections, which tend upon cashflow and credit.
Let us discuss the most spread definitions of credit. in today’s publications credit appeared to be “luckier”, then finances. For instance, we meet using the following definition of credit in the finance-economical dictionary: “credit is the loan by means of of money and commodity together with the conditions of returning, usually, by paying per cent. Credit represents a sort of movement of the mortgage funds and expresses economic relations between the lender and borrower”.
Here is the conventional definition of credit.
In the guide of the political economy published under diminution of V. A. Medvedev the following definition is offered: “credit, as an economical category, expresses the created relations between the society, labour collective and workers during formation and usage of the loan funds, under the terms of paying present and returning, during transmission of sources for the temporal usage and accumulation”.
Credit is mentioned in the next way in the earlier education-methodological guides of political economy: “credit is the method of money relations, which can be done in the procedure for using and mobilization of briefly free cash signifies of the state budget, unions, fabricates, organizations and citizenry. Credit has an objective character. It is employed for supplying widened additional creation of the state and other needs. Credit differs from finances by the returning character, while lending of fabricates and businesses by the state is carried through without this this problem”.
We meet with the next definition if “the course of economy”: “credit is a cost-effective category, which represents relations, while the separate industrial organizations or persons transmit cash means to each-other for temporal usage underneath the states of returning. Development of credit is conditioned with a historical process of meeting the economic and money relations, the sort of which is the cash relation”.
Following scientists give somewhat different definitions of credit:
Combining every definition named above, we come to an thought, that credit is providing money capital of commodity as a debt, for certain terms and material provision below the cost of firm percent rate. It expresses certain economical relationships between the members of the entire process of capital formation. Necessity of the credit relations is conditioned, from 1 side, by gathering solid quantity of temporarily free money sources, and in the second side, being of petitions of them.
Credit is giving the temporally free money resources or commodity as a debt for the described terms by the cost of fixed percentage. Therefore, a credit is the loan by means of of cash or commodity. In the act of this loan’s movement, a definite relations are formed between a creditor (the loan is given by a juridical of bodily individual, who gives particular cash as a debt) and also the debtor.