What types correspond to non-cash forms of money. Money. Types of money and their purpose. Depending on whether the money has real value, it is divided into

Parameter name	Meaning
Topic of the article:	Types of money
Category (thematic category)	Finance

1. Commodity money (coins)- money used as a medium of exchange, as well as bought and sold as an ordinary commodity.
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Coins - ϶ᴛᴏ metal ingot of a special shape, weight, test. The values ​​of the coins are certified by the state.

a) full-fledged- gold and silver coins;

Money is called complete, if the commodity from which they are made has the same value both in the sphere of circulation as money and in the sphere of accumulation as wealth. Having intrinsic value, high-grade money is independent neither from other types of wealth, nor from the market conditions in which it circulates. High-grade money includes all types of commodity money, gold and silver coins.

b) defective coins;

To defective money includes such money, the purchasing power of which exceeds the intrinsic value of the commodity acting as the bearer of monetary relations. The purchasing power of this money is determined exclusively by market conditions, while the intrinsic value of inferior money has no effect on it. Defective money includes all types of post-gold money - paper and credit money.

2. paper money - it is a means of payment whose value outweighs their value in alternative uses. Representatives of gold replacing it in circulation. Paper money does not have a value of its own, it is a sign of gold, and is introduced by the government, which gives it a coercive rate. This compulsory course is only valid within a given state. The real value that paper money represents does not depend on state power, is determined by the objective laws of monetary circulation. Paper money will circulate at the value of the gold money it replaces in the event that it is issued as much as extremely important gold money in accordance with the law of paper money. If the issue of paper money exceeds the requirements of the turnover in gold money, then they are depreciated. There is a rise in prices.

Paper money is banknotes (bank notes). This name - bank notes - reflects the history of these paper money. Banknotes originated in the Middle Ages and were a banker's certificate that he received a certain amount of gold for safekeeping. The amount of gold was noted in the banknote ĸᴏᴛᴏᴩᴏᴇ was to be returned to the owner at his request. These bank receipts began to move independently: they were accepted for payments. In the future, the largest (central) banks receive the right to issue banknotes. Since they eventually become government banks, the government takes over the right to issue banknotes. First, banknotes were exchanged for gold and their issue was associated with the country's gold reserves. At the beginning of the XX century. most countries in the world stop exchanging banknotes for gold, and their issuance is subject to other requirements.

Paper money also includes treasury notes ... They are issued by the Ministry of Finance to cover government spending. Treasury notes have never been exchanged for gold. By the time such an exchange was carried out in relation to banknotes, there was a difference between them and treasury notes. After the exchange of banknotes for gold was discontinued, this distinction disappeared.

Consequently, modern paper money fulfills the function of money not because it is itself a commodity or is backed by gold, but because it was determined by the state in this role. From the standpoint of the above criterion, money is divided into commodity and decreed. Money that has its own intrinsic value is called commodity. Modern money that has no intrinsic value, and its value is determined from the outside, are called decreed.

3.credit money- means of circulation, which represent the obligations of an individual or a company. Funds that replace money. These funds include checks, bills, credit cards. Οʜᴎ are used in calculations, provided that each of them has either bank accounts or cash.

Receipt- order (order) of the owner of the bank account to transfer a certain amount in favor of the bearer of the check. The consequence of this order should be either the issuance of a check to the bearer of cash, or a non-cash transfer of money from one bank account to another.

Promissory note- a written undertaking by the debtor to pay a specified amount of money within a specified period. The bill has the following details: Name; a certain amount of payment; indication of the due date; the name of the person to whom the payment should be made; the place, date of drawing up the bill and the signature of the person who issued it.

A bill of exchange can start independent movement if it is transferred from one owner to another by means of a special transfer inscription - an endorsement. A bill of exchange can be transferred to a bank, having received (with a certain discount) the debt before the date specified on the bill of exchange. In case of refusal to pay, the owner of the bill of exchange sues and the amount specified in the bill is collected in court from the person who issued the bill.

Consequently, for the existence of bill circulation in the country, it is extremely important to have legislation on the movement of bills, an appropriate judicial mechanism, and a developed banking system.

4. Bank accounts (or deposit money) is a kind of means of displaying and monitoring the state and movement of funds (deposits) of the owner of the money, who transferred them to the bank. Accounts are divided into perpetual and fixed-term. Funds from a perpetual account (account on demand, current) can be received by the owner at any time. Time accounts become available to depositors, that is, they can receive money from them only after a certain time.

5. Electronic money - this is the same deposit money, the use of which is based on electronic technology (computers). It makes it possible to transfer money and register information about their movement in a paperless way. Οʜᴎ, in fact, is not an independent form of moneyᴦ.

There are several technologies that enable electronic money to function. The technology of "automated payment" is a network of banks connected by one computing center. The "automated cashier" technology helps to make such operations without human intervention: receiving cash, making deposits, transferring money from one account to another.

Forms of money

Forms of money are associated with the function of money as a medium of exchange. There are two main forms of money:

1. cash- paper signs and change coins;

2. non-cash money. Non-cash money is different in its specificity.

Features of non-cash payments are manifested in the following:

a) the payer and the recipient transferring cash take part in settlements in cash. In non-cash payments, there are three participants: the payer, the recipient and the bank in which such payments are carried out in the form of entries on the accounts of the payer and the recipient;

b) participants in non-cash settlements have a credit relationship with the bank. These relationships are manifested in the amounts of balances on the accounts of participants in such settlements. There are no such credit relations in cash circulation.

Types of money - concept and types. Classification and features of the category "Types of money" 2017, 2018.

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The emergence, nature, functions and evolution of finance. References 1. А.V. Mogilev, N.I. Pak, E.K. Hoenner Informatics: - M., 1999; 816 s. 2. Chastikov A.P. Journal "Informatics and Education", 1996. 3. Guter RS, Polunov Yu.L. From abacus to computer. - M .: Knowledge, ....

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Money is a universal means of exchange of various goods and services among themselves, as well as a measure of measurement. Just as weight is measured in kilograms, in liters of liquid, the value of this or that product and service is measured by the amount of money, and wages are measured in money, or in other words the value of various specialists. Money can be paper, metal, virtual.

And money can also be considered a commodity that arose in the process of exchange, and with amazing properties: low cost and high. They can be exchanged for travel, jewelry, food and miscellaneous items. Although by themselves they are worth little, and can overnight turn into insignificant pieces of paper and worthless metal round timber, falling under the reform. Their value is given by the obligations of the state. If the state cannot fulfill its obligations, for example, repay a debt to another state, pay salaries to budget employees, etc., the value of money will inevitably fall.

From the point of view of the ancient sages, representatives of Feng Shui (the science of energy), money is an energy of colossal power. It can be attracted and repelled. Accordingly - get rich or poor. More often this happens unconsciously. Indeed, who would like to voluntarily become poorer? We will tell you later how to attract the energy of money.

There is also such a definition of money as evil or filth. "Money is evil", "Money is not happiness" - such well-known sayings convince people to fear wealth. This makes some sense. Money can be evil. But not by themselves. Evil and dirty can be intentions, how to dispose of this money, or how to get money, for example, to steal. Money does not bring happiness, but it makes life better. When you have a lot of money, you can afford better treatment, recreation, clothing, cars, etc.

Functions of money and their role in society

With the development of society, the role of money in it also became more complicated. In the modern world, this is a part of economic relations, without which we cannot exist in the form we are accustomed to. If we take money out of our lives, then humanity will return in its development several centuries ago. Many professions will disappear without money, since people will be forced to engage in only those activities that will help them feed themselves and not die of hunger.

Now money performs many functions:

1 Means of payments. With the help of money, you can pay for the goods both instantly and later by borrowing it. The amount owed is expressed in monetary units.

2 Assessment of the work of people. Rare specialists are valued most of all. The work that many can do is rated below.

3 Equivalent value of goods and services. Products have different dimensions, weight, volume, texture. And money is a universal measure of value that allows you to fairly exchange one good for another.

4 Accumulation tool. Banknotes can be saved in a bank account, turned into gold and silver. Such a stock can be stored for a long time, it will not deteriorate, it will not be “eaten up” by inflation, and it can even bring it if you invest wisely.

5 Mediator in the circulation of goods. With the advent of money, everything has become easier, faster, because money is a universal commodity that can be exchanged for anything. In the era of natural exchange, it was necessary to look for a suitable product in the markets, even to make a double or triple deal in order to exchange one product for another. Now you can sell, for example, grain even to another country, having received money on the same day, or even by prepayment - through the bank to the organization's account. And immediately with this money to pay for the purchase of combine operators in another city, transferring funds to the account of the manufacturing plant.

6 Interstate means of payment. Money allows you to trade between countries. For example, Russia sells coal, gas and oil to European countries, and buys machinery and equipment with the proceeds.

7 Money binds commodity producers among themselves and actively participates in economic relations. For example, a plant for the production of meat and sausages buys raw materials, packaging material from other manufacturers. The finished product goes to consumers. The product turns into money. The commodity itself goes out of circulation, the same sausage is eaten, but the money remains, making a new cycle - “money-commodity-money”. Money allows commodity producers to work further and develop, provide their employees with work and, accordingly, remuneration.

With the money he earned, he founded the Krasnodar football club, built one of the best stadiums in the country, and also helps financially children and youth football in the region. This is only a small part of what Galitsky did for the city and the Krasnodar Territory as a whole, for which he is appreciated and respected by both government officials and ordinary citizens.

History of the origin of money

Nobody knows for certain when the money was formed. But it is believed that approximately 2-3 thousand years BC. a semblance of a generally accepted equivalent appeared in the exchange of goods. In the beginning, there was just a natural exchange: a goat for a cow, an instrument for meat and skins. But very soon this scheme ceased to seem mutually beneficial and fair. It was necessary to come up with a universal intermediary product in exchange, which could be easily exchanged for other goods due to the high demand for it.

And there was "money". Different peoples had their own. In Germany, for example, cattle was used as money, in Mongolia - tea, in Peru and Bolivia - pepper, In Ancient Russia - skins of squirrels and martens, In Mexico - sugar and beans. On some islands in the Pacific Ocean - stones.

Cowrie shells were used as commodity money in India, China, Africa. The first mentions date back to the middle of the 2nd millennium BC.

These not very convenient intermediaries in the exchange of goods were replaced by metal. First iron, then copper and bronze, tin and lead. And then people found universal metals for the exchange of goods - gold and silver.

Precious metals have all the necessary properties:

• rare, since finding them is not as easy as iron or stones;
• economic divisibility, in contrast to the skins, which are cut into two parts, it's like throwing away;
• safety, they do not deteriorate over time, like fish, even if it is dried;
• relatively small size, that is, portability, in contrast to stones, which are difficult to drag;
• uniformity, that is, all the pieces can be made the same, unlike sheep, one of which can be more plump than the other;
• stability, that is, constant value, in contrast to, for example, livestock, the value of which may fall due to animal disease.

In the beginning, people simply weighed gold when exchanging it for a commodity. Then they simplified the task by putting a stamp on the metal, confirming a certain weight. Finally, ingots began to be given a certain shape - the shape of coins. And the sum was the figure indicated on the coin. In the future, states began to take on the function of certifying the weight and reliability of the metal, confirming with a certain stamp.

Who was the first to make coins from metal will remain a mystery. Some sources claim that the first money was copper coins in the 18th century BC. in China. Others argue that the Persian king Darius became the ancestor of coins, moreover, from gold. Archaeologists have also found more ancient coins of the powerful kingdom of Lydia from Asia Minor. They were made from an alloy of gold and silver. Well, Alexander the Great is considered the most authoritative in the issue of money (drachmas and tetradrachmas) and their design.

Coins of the Lydian kingdom, which stretched in the western territory of modern Turkey.

From the history

The great commander and conqueror Alexander the Great became famous not only for military victories, but also as a trendsetter in the design of coins. Before Alexander the Great came to power, each Greek city minted its own money. Alexander introduced a single coin in the country. Issued money from gold and silver, had the same weight and design. The goddess Athena was depicted on gold coins. And on the silver ones - Hercules in the lion's skin. Later, he was replaced by the Macedonian himself in lion's skin. He was deified during his lifetime. Some coins were dedicated to the special victories of the great commander. For example, during the battle with the Indian king, the commander's favorite horse, Bucephalus, fell. But the victory was won. This is how the rare Decadrachm coin appeared. On one side, the defeated king of India is depicted on an elephant, and on the other, Alexander on his war horse.

Metal money, although not stones, weighed a lot and is inconvenient to use. After the invention of paper, the Chinese decided to make money out of it. And in Europe, the first paper money was made in the Netherlands during the Anglo-Spanish war. They were made from pressed paper on which the Bible was printed. After the end of the war, the money was withdrawn from circulation.

And seriously and for a long time, paper money came to Switzerland in 1661. The initiator of their issue was the first Swiss bank Johan Palmstruk. However, it all ended in a scandal, because so much money was issued that it became difficult to exchange it for gold and silver, they depreciated. I had to withdraw some of it from circulation.

Paper money also depreciated in Russia, issued for the first time under Catherine II, during the Russian-Turkish war. Inflation has "eaten" them. This is when the state, regardless of the existing trade turnover, issues more money to cover its government expenses. As a result, there is a lot of money, but not enough goods, prices rise along with the demand for the goods. And it turns out that it is impossible to buy the same amount of food and things with the same amount of money. An attempt was made to introduce paper notes in England during the Napoleonic wars, and in the USA during the war with Canada.

To prevent paper money from losing its purchasing power, Great Britain introduced the "gold standard" in the 19th century. That is, each bill had a gold backing. All countries quickly began to switch to this standard, national currencies became strong and reliable, people trusted them. That is, for example, $ 20 could be exchanged for one ounce (31.1 grams) of gold.

The very same England and abandoned the gold standard in 30 years. It has become not profitable. During the First World War, during the financial crises in countries, the economies of many powers were reeling, the demand for gold increased, and the national currency depreciated. But England was still strong, as were her pounds. Other countries began to buy them as currency with a guarantee. England began to lose its own gold reserves. The final abandonment of the gold standard occurred in 1944. Due to the war devastation, money has depreciated in many countries. Only the United States could offer the dollar as a world currency. It was securely backed by $ 35 an ounce of gold. This course lasted until 1971.

Video: Galileo. History of inventions. Money

Types of money

Money has gone a long evolutionary path: from cattle to virtual analogs that cannot even be touched, for example, electronic money, cryptocurrency, etc. The essence of money, its functions, type - changed with the development of commodity relations in society. At the beginning of its evolutionary path, of course, it was commodity money.

Commodity money

Commodity money is a real equivalent commodity, the purchasing power of which is fully equal to the value inherent in this commodity. It is a type of money that has evolved from basic necessities to luxury goods and then to gold and silver bars.

In the beginning, the commodity money was salt, hides, tools, livestock, etc. By the way, the word “commodity” itself comes from the Turkic word “cattle”. Homer estimated the cost of weapons in bulls, and in ancient Russia the tax collector was called a “cattleman”.

Then metal money became commodity money. Their face value fully corresponded to the value of the metal from which they were minted - gold, silver, copper or bronze.

In the modern world, commodity money can be called any goods that are exchanged in the process of barter. Barter is a type of exchange in which money is not used, and the cost of goods is independently estimated by the participants in the transaction.

From the history

The Soviet Union had an interesting experience of barter transactions. When no one had money, they exchanged what they had. For example, for little money, the USSR bought raw sugar from Brazil, which was then refined in Ukraine. The finished sugar was exchanged for oil in Siberia. This oil was exchanged in Mongolia for copper ore. And in Kazakhstan, copper ore was processed into copper. And they sold copper on the world market for a very good price in dollars. Received high profits. The whole operation lasted about six months, had great risks, but ended with good results.

• as a souvenir or gift;
• to create and replenish the collection;
• for investment, that is, with the aim of selling later at a higher price.

People often ask a question, but in a store, they say, is it possible to pay with such money? Of course, and quite officially and for any product or service. But this is not profitable. The actual value of the investment money is always higher than the nominal value. For example, a hundred-ruble Olympic bill can be sold today to collectors for 3000-5000 rubles. The 1 kg “Matsesta” gold coin, issued in honor of the Winter Olympic Games in Sochi, has a denomination of 10 thousand rubles. And you can actually get 2.4 million rubles for it.

Good money

High-value money is all types of commodity money, including gold, silver and copper money, the face value of which, indicated on the obverse, necessarily coincides with the market value. That is, if a coin weighs one gram of gold, then its face value is the same as a gram of gold on the market.

Full-value money, in fact, is not threatened: money made of gold does not depreciate, but rather grows in price. However, thanks to new rich deposits, silver and copper have lost in value several times in their history. As a result, industrialized England became the first country to switch to the "gold standard", and all others followed it. That is, only gold coins began to be considered full-fledged money, and silver and copper passed into the category of inferior ones. Read on to find out what inferior money is.

Now full-value money is used only in the form of a limited edition of collectible, commemorative coins. The widespread use of this type of money is no longer there, and here's why:

• precious metal money requires expensive production;
• over time, such money wears out, loses its weight and its real value;
• the need for such money may not keep up with the needs of the market when the range of goods and services grows and there is not enough means of payment for the circulation of goods and services;
• by no means every country has its own deposits of precious metals; they had to be bought from other states.

Defective money

Bad money is a substitute for good money. These are signs, the production of which is much cheaper than the cost that appears on the front of the banknote. For example, a dollar, even if it is 100 dollars, is only 4 cents. That is, to make a 100 dollar bill, you need to spend only 4 cents. Thus, the dollar, like the ruble, is inferior money.

Defective money can be divided into three groups:

• paper;
• metal;
• credit.

The first paper money, according to many experts, appeared in China. In Russia, paper notes have been produced since 1769.

Defective money was distinguished into secured and unsecured. The secured defective money was the representative of full value money. In fact, they can even be classified as commodity money, since, although they did not have their own value, they could be exchanged for a fixed amount of goods or for precious metals. We have to talk about this in the past tense, since the provided defective money ceased to exist with the abolition of the “gold standard”.

Some Americans still believe that their dollars are pegged to gold. In fact, they are no longer tied to either gold or silver, but are held by a government decree and people's confidence in this decree. The inadequate money that people now use is not backed by anything. They are called fiat.

Fiat money

Fiat money is considered to be such means of payment, the nominal value of which is established and guaranteed by the state. In fact, these are all national currencies - euros, dollars, pounds sterling and others. In Russia, these are rubles. Fiat money can be in the form:

• banknotes and coins;
• electronic and non-cash money.

It can be schematically depicted as follows:

This is "money on trust" backed only by the authority of the state. They run the risk of being depreciated due to hyperinflation. And inflation is, one might say, a situation when a large amount of money hunts for a small amount of goods.

A striking example was inflation in the 90s in Russia, when prices for goods in 1992 jumped 26 times, and in 1993 - 10 times. This happened after the prices for all goods and services were “released” by the Decree of the President of the RSFSR. The state no longer intervened in pricing (except for some socially significant food products), the country took a step towards a market economy. And the shortage of goods at that time was simply catastrophic. And here's why: in the USSR, behind the inflated figures of well-being, there was a lack of food and essentials, inflation was restrained by the state. Although it could be seen everywhere in the form of queues and a popular phrase: do not give more than two (three) to one hand! Now inflation has come out.

The second reason for hyperinflation was the situation when, after perestroika, almost all factories and plants stopped working or drastically reduced productivity. Main reasons: the planned economy collapsed. And large sums of money were withdrawn from circulation by means of “confiscatory” reforms, which will be discussed later. It was not easy to create new economic relations, especially when there was a shortage of working capital. Those who made the products survived. But even here everything is not simple.

Example

Tuapse shipyard, which was prosperous in the USSR. He repaired ships of the navy and a little civilian, produced bushings and rings necessary for the repair of ship engines. Then orders for the repair of ships decreased significantly - the country's expenditures on the Army and the Navy were reduced, and civilian ships began to visit less often, either they turned out to be unclaimed, or there was simply no money for repairs.

At first the plant tried to survive by focusing on the production and sale of bushings and rings for marine machinery on the international market in Hamburg. This generated a good dollar return to keep the business afloat. The products were of good quality and in demand. But the plant all the same ceased to exist, as it was sold to a new owner who was not interested in the production of parts for mechanisms. Until now, he has not decided how to use the territory of the former enterprise and the berths.

There is another opinion about hyperinflation: the shortage of some goods was artificially brought to a critical state. Expecting price liberalization, pragmatic merchants hid their goods. And the statement about the critical state of the Soviet economy was a myth. Academician of the Russian Academy of Sciences Oleg Bogomolov, for example, cannot find an explanation for how, with a steady decline in production in all industries, it was possible to feed the country and keep it afloat, if the Gaidar government, according to them, came to the ruins of the economy? There is only one answer: either due to huge borrowings from the West, or as a result of the consumption of innumerable natural and other riches inherited by the reformers. Most likely, it was due to these two factors that it was possible to survive, and not due to shock reforms.

Shock reforms are called the reforms of Yegor Gaidar - Deputy Prime Minister for Economic Affairs since the fall of 1991. Even before the Yeltsin-Gaidar government, the Minister of Finance of the USSR Valentin Pavlov in 1991 carried out a reform, suggesting that the citizens of the country exchange money in 3 days: bills issued in 1961, in denominations of 50 and 100 for the new 1991. Moreover, the amount for the exchange was limited to 500 rubles. It was proposed to put the surplus on deposit accounts with Sberbank. This was done in order to remove excess banknotes from circulation. Superfluous, because the rubles printed in recent years were not provided with goods.

With the arrival of Gaidar, people learned the concepts of "privatization", "liberalization". Under his program, prices were released in 1992 and, as a result, hyperinflation erupted. And in 1993, the next, now Gaidar reform, forced people to exchange rubles of 1961-1991 for new ones in 1993. For 3 days and with restrictions on the amount - no more than 100 thousand rubles (in those years, a thousand already had a low purchasing power). Many did not manage to exchange, others simply could not. All Soviet deposits in Sberbank, all savings have depreciated. For non-citizens of Russia, that is, residents of the former republics, who suddenly became citizens of other states, the amount was limited to 15 thousand.

These reforms can be called confiscatory, since they were aimed at removing excess money from people. But the reformers seem to have overdone it. A decrease in the money supply above a certain limit leads to a decline in production, enterprises simply did not have enough working capital. Of course, it was necessary to switch to other tracks of the economy. But the reforms have left ordinary Russians mistrustful of the Russian national currency for a long time, which can turn into insignificant pieces of paper overnight.

Electronic money

Electronic currency is a virtual currency that can be used to pay for goods and services through the global information network Internet.

There are electronic fiat money and electronic non-fiat money.

Electronic fiat money backed by the state, designated in the form of the main currency and must be accepted on a par with ordinary paper banknotes. A prime example is credit and debit cards. Money is stored on them in electronic form, but this does not prevent us from paying with a card in shops, cafes and other places.

Electronic non-fiat money- this is money of any non-state payment system, which means that the emission and circulation of this currency is subject to the rules of the payment system that issued it, and not state laws and regulations.

A striking example is the electronic payment system Webmoney. It would seem that the settlement system and the exchange rate are not much different from ordinary money. Nevertheless, inside this payment system, its own rate of conversion of webmoney to rubles, dollars or euros is used. If for some reason the system ceases to exist, then the money stored in the electronic wallets of this system will disappear along with it. They do not have government obligations, which means that you can hardly return them.

All of the above does not mean that the WebMoney system and others should not be used, or they are unsafe. In the modern digital world, they have taken strong positions in settlement systems, they are actively used by various Internet services, they have their pros and cons.

Electronic non-fiat money is stored in electronic wallets. They can:

• pay for utilities;
• pay for goods and delivery;
• buy tickets for any type of transport;
• pay fines, taxes, duties;
• get paid for work;
• transfer from one electronic wallet to another or to a bank card.

From virtual money, electronic counterparts can turn into real money if they are transferred to a card, and then withdrawn from this card in the form of paper money.

There are various electronic payment systems that allow transactions with electronic money: PayPal, Yandex Money, WebMoney, Qiwi.

Digital money, or cryptocurrency

It is impossible not to mention the cryptocurrency (bitcoin, ether, ripple, litecoin, etc.), which has firmly established itself in the modern world. In fact, this is a kind of electronic money, but it can be safely distinguished into a separate form, since, unlike the same Webmoney or - cryptocurrency does not have intermediaries.

When you make a transfer from one WebMoney wallet to another, then you have to pay a commission to the system. In fact, it was created for this. When you pay with a plastic card of the Visa or Mastercard systems, then in each transaction there is also an intermediary - a bank, which also takes a commission for itself. Bitcoin or any other cryptocurrency is transferred from one owner to another directly, bypassing intermediaries. She was invented for this.

The first cryptocurrency in the world - Bitcoin, stands for bit - "bit" and coin - "coin". A bit is a unit of information in the binary number system. On computers, all information is measured in bits.

The cryptocurrency is not tied to anything, neither to the dollar, nor to gold, it does not even have any controlling body, like, for example, the Central Bank of any state, which is engaged in emission, that is, the issue of money. Cryptocurrency is created using mathematical calculations on various computers (mining). In this independence, many politicians see a threat to classic currencies, so they are trying to limit the spread of cryptocurrencies.

However, cryptocurrency can already be used to pay for many goods and services on the Internet. It can be earned and then exchanged for another currency. So this is real money.

Credit money

Credit money is funds that are lent by banks at interest for a certain period. They are based on bank deposits. That is, money that other people have deposited in the bank.

Loans are used by both individuals and companies, as well as entire states. Credits are usually used when money is urgently needed to buy something, and a person does not have the entire amount, but he expects to receive the money later and repay the debt in parts by paying a predetermined amount (interest) for using the money.

External and internal money

Money is distinguished into internal and external. Domestic money- those that are created by commercial banks, and external ones are issued by the central bank. Let's be clear: - this is the main bank of the country, a state credit institution that issues national money and controls the entire banking system in the country. The central bank does not interact with individuals. For this, there are commercial banks that are intermediaries. For completeness, it should be added that the Central Bank in Russia, unlike the State Bank in the USSR, is an independent legal entity, and no branch of government can manage it.

Domestic (checks, stocks, promissory notes and bonds) are someone's assets on the one hand (from investors, capital holders) and someone's debt obligations on the other. Some make a profit for keeping money in a bank account, others pay interest for using money on credit. The interest for using the loan is higher than the profit that the owner of the capital receives as a percentage. For example, on a deposit, a person will receive 6% of the invested amount for the year. And the one who borrowed will pay 19% per year of the amount borrowed. The difference remains with the bank as profit. Such a turnover of money allows the development of industries and the economy of the country as a whole.

Receipt - a document confirming payment by bank transfer. The recipient of a check signed and stamped by the owner of the bank account can demand money from the bank for it. Based on this document, the specified amount on the check will be debited from the payer's personal account.

Promotion - this type of security, confirming that its owner has a percentage of an enterprise. OJSC or CJSC can issue shares. An open joint stock company sells its shares on public markets, while a closed joint stock company distributes shares only to those who invested in the creation of the company.

A bill of exchange and bonds are similar in that both are issued in exchange for a certain amount of money, which is borrowed by the one who issued this financial product. But unlike a bill of exchange, which only allows you to return money on time, the bond also brings additional income in the form of interest. Bonds can be issued not only by the firm, but also by the state.

External money- it is more often fiat money, as well as foreign currency, gold and silver bars stored in the Central Bank. Cash and deposits of the Central Bank are also called the “monetary base”. It is the Central Bank that controls the activities of all other banks and maintains government accounts. Thanks to the Central Bank, the state has data on the entire money supply of the population, implements financial and credit policy, collects taxes and fines from citizens through bank accounts, and can freeze money in an account in case of judicial problems.

There are two types of monetary systems: metallic and monetary. They, in turn, are also subdivided into subspecies.

Metal system

It has sunk into oblivion as gold and silver coins fell out of circulation. But all the same it is necessary to remember about it, since it is the ancestor of the classical system of monetary circulation.

Monetary system

This system works in all countries to this day. And no one has come up with a better one yet. After leaving the circulation of gold and silver coins, they were replaced by paper money and credit cards. They are not backed by gold, just “money on trust”, nevertheless it works great.

Monetary system: what it is and what types are

The monetary system is the circulation of the money supply within the state. People use money every day and are part of this monetary system. The monetary system is subject to certain rules that are regulated by law, as well as by the main supervisory authority - the Central Bank of the Russian Federation.

Money circulation is regulated by the following laws:

• The Constitution of the Russian Federation;
• The Law "On the Central Bank of the Russian Federation (Bank of Russia)";
• The Law "On Currency Regulation and Currency Control";
• The Law on Banks and Banking Activities;
• The Law "On Counteracting Legalization (Laundering) of Criminally Obtained Incomes and Financing of Terrorism".

The monetary system of any country is characterized by the following features:

1 Monetary unit. It must have a name (ruble, dollar, euro, pound, yen), abbreviation (RUB, USD, EUR, JPY, GBP), symbolic designation (₽, $, €, £, ¥), digital or numeric code (used in countries where the use of the Latin alphabet is absent, for example, the ruble code is 643, and the American dollar is 840), bargaining chips (for the ruble, these are pennies, for the dollar, cents, etc.), as well as the calculation system (in 1 ruble, 100 kopecks are simplified decimal system, when the base currency consists of 100 derived units).

2 Type of banknote. It can be paper or metal

3 Face value This is the value of a monetary unit, which is indicated on a bill or coin. The denomination is determined by the issuer, that is, the organization that issued this currency. We use banknotes in circulation with denominations of 5, 10, 50, 100, 200, 500, 1000, 2000, 5000 rubles. And also coins with denominations of 1, 5. 10, 50 kopecks and 1, 2, 5, 10 rubles.

4 The structure of money circulation. This is how the circulation of the money supply takes place in the internal and external economy of the state, the existence and functioning of cash and non-cash forms of payment, interbank payments and transfers.

5 Issue of banknotes. That is, the production, as well as the procedure for replacing damaged coins and banknotes, removing them from circulation, introducing new ones.

6 Procedure for the circulation of foreign currencies. This includes the rules for the use of foreign currencies, their rate in relation to the national currency, methods of exchange.

7 Rights and obligations of the Central Bank. All of them are spelled out in the relevant laws.

8 Rules for the operation of commercial banks, investment companies, pension funds and other participants in the economic market. All of them must work according to the same rules, obey the laws so as not to undermine the country's economy.

9 Monetary policy of the state. In other words, it is part of an overall economic plan of action aimed at improving the lives and well-being of people. The main instrument here is the key rate, on the value of which the size of inflation depends. And the level of people's living depends on the size of inflation. The higher the inflation, the more the money depreciates and the people become impoverished. In this context, the main task of the Central Bank is to ensure consistently low inflation.

Banknotes and coins are made at special enterprises, they are also called mints.

In Russia, OJSC Gosznak, which is 100% owned by the state, is engaged in minting coins and printing banknotes. The State Sign includes the following enterprises:

• Moscow Printing Factory,
• Moscow printing house,
• Moscow Mint,
• St. Petersburg Mint,
• St. Petersburg Paper Mill,
• Perm Printing Factory,
• Krasnokamsk paper mill)
• Research Institute (Research Institute of the State Sign).

At the enterprises of the State Sign, they produce not only money (banknotes and coins), but many other products, including:

• forms of passports and foreign passports, other identity documents;
• health insurance policies;
• work books;
• military cards;
• driver's licenses, vehicle registration certificates (STS), vehicle passports (PTS);
• stamps;
• orders, medals, state awards;
• SIM cards for phones;
• plastic cards for banks;
• printed products with watermarks, holograms and other security elements;
• equipment for processing, control and accounting of products;
• control identification marks, which are used, for example, for marking fur products;
• excise stamps;
• and many other products.

The state sign manufactures products not only for Russia, but also supplies products for export to more than 20 countries in Asia, Africa, Europe and the CIS countries.

From the history

The most famous counterfeiter in the USSR was Viktor Baranov, a chauffeur by profession. He himself created the printing press, paints. Baranov printed the most difficult to counterfeit banknotes with a denomination of 25 rubles. Now Baranov's paints are in demand even abroad. And some of the counterfeiter's know-how is still used in the work of Goznak.

Hitler flooded the whole world with counterfeit dollars, which he used to pay as international currency with many countries. Moreover, the quality of the counterfeits was such that it was impossible to distinguish genuine bills from counterfeit ones. After the defeat of fascism, the FRG did not have the right to print banknotes on its territory until 1955. They were printed for the country in London.

Banknotes and coins of the Bank of Russia

This is how the banknotes of the Bank of Russia look. Click on the photo, it will open in a larger size, where you will see the front and back sides of the bill. The photographs show, among other things, the recently issued banknotes of 200 rubles and 2000 rubles.

Coins. Click on the name of the coin.

1 kopeck 5 kopecks 10 kopecks 50 kopecks 1 ₽ 2 ₽ 5 ₽ 10 ₽

Material: bimetal (steel plated with cupronickel)Material: steel with brass electroplated

Where to get money, how to attract it into your life

It is impossible to imagine life at all without money. You have to pay for everything. Money can and should be earned. There are different ways for this:

• earn money as an employee;
• find a part-time job or co-workers;
• work for yourself by creating your own business;
• receive passive income from investments or real estate.

You can also sell unnecessary things, turn a hobby into income, provide intermediary services, engage in network marketing, make money on the Internet. There are many ways, in this article we will not focus your attention on each of them, since all this is detailed in our article Where to get money, we recommend reading it.

Of course, there are remote, seedy villages and hamlets where it is extremely difficult to make money. In this case, you need to find the strength in yourself and leave. Money always concentrates around large metropolitan areas, as well as places rich in natural resources (oil, gas, coal, precious stones, iron ore, timber, etc.). There is always work in such places.

Some people do not want to leave their native places, as they love and are accustomed to the created conditions, life, etc. In this case, you can consider the issue of temporary relocation. Earn capital, create passive sources of income for it, and then return back to your native pinatas.

There are no hopeless situations, there is laziness and unwillingness to change oneself, one's usual way of life, to go beyond the comfort zone. And all these problems are solved primarily with the help of the correct setting of life goals, your values ​​and beliefs, desires and aspirations.

Try to imagine the life of your dreams. What is she like? Find a secluded place where no one bothers you, turn off your phone and try to imagine what the perfect day in your dream life would look like. What do you do? How are they dressed? What is your home? Automobile? Where do you live - a private house or a spacious apartment?

This technique is called visualization and it helps attract money into your life. Try to think about these things more often, such as before bed. Thought is material and everything that you think about is attracted into your life like a magnet.

If you are poor and you have no money, then it is quite possible that with your negative, negative thoughts you have attracted a lack of money. Thoughts can be idle when you think only about how you spend money on entertainment, clothes, women. Often the same happens in reality.

Once you've got a clear picture of your dream life in your mind, start thinking about how to get there. What are you doing now contributing to this? Will your activity help you get what you want? If not, then look for options, read biographies of successful people, find out what helped them achieve success in life. Study business literature, read economic magazines and websites. This will help you realign your mind to attract money.

The topic of attracting wealth and luck is extensive, here we give you only general principles, if you want to know more about this, then read our article How to attract money and luck.

Answers to frequently asked questions

What role does money play in the economy?

In the modern economy, the key role played by money is to save time and effort when performing commodity exchange transactions. Previously, for example, when money did not exist, people had to exchange goods for goods. Imagine a peasant who grows vegetables (potatoes, cabbage, tomatoes, etc.) and suddenly wants to eat meat. To do this, he would have to go to the market, having previously filled a cart full of vegetables, and there he would exchange it all for a lamb or a pig.

Just imagine what labor costs he would have to bear: dig up the potatoes, wash them, load them onto the cart, harness the horse, get to the market, bargain with the owner of the pig, unload the potatoes for him, load the pig and take it all back. Also imagine how long it will take. Money made it possible to reduce costs, free up resources that were used to increase labor productivity and, ultimately, led to economic growth and the development of civilization.

What is the best place to invest in 2018?

2018 is a year of instability. Russia is still under sanctions, Western countries are finding new pretexts to increase pressure on our economy and, thus, on the country's political leadership. This means that you need to be extremely careful about the choice of investment instruments.

• Stock

According to analysts from leading investment companies, the shares of many domestic enterprises are undervalued. This means that in the long term, this is a profitable investment. Pay attention to the phrase “in the long term” - it means an investment horizon of at least 2-5 years. If you have savings that you are ready to forget about for the next 2-5 years, then this is one of the best and most reliable ways to invest money.

• Bonds

Until April 2018, bonds could be considered a profitable way of investing money, their yield exceeded. But after the introduction of spring sanctions, this investment instrument found itself in a dangerous zone.

• The property

One of the most popular ways to invest spare money has always been real estate. There is an opinion that real estate always grows in value and it is better to have a roof over your head than money, which can depreciate as a result of inflation, a rise in the dollar, or some kind of crisis. There is logic in this, but if we consider real estate from the point of view of investment, then now it brings low dividends and it will not work to make big money with it.

In 2018, real estate investment is complicated by instability. The year started off well, inflation indicators in the country are one of the lowest in history, which allowed the Central Bank of the Russian Federation to reduce the key rate, which in turn affected the credit and mortgage rates - they also went down.

Cheap loans allow construction companies to raise funds to build new homes, and cheap mortgages increase home sales. However, new sanctions in a matter of days can weaken the ruble, which will entail an increase in the dollar rate, and then the key rate will soar again, and the mortgage market will stall again. A high dollar will also affect store prices and contribute to lower real incomes of the population.

• Bank deposits

A decrease or increase in the key rate of the Central Bank also affects bank deposits. The lower the key rate, the lower the yield on deposits, and vice versa. In 2018, the rate on deposits is low, which does not allow us to call a bank deposit a profitable way of investing money. However, he never appeared to them.

When deciding in favor of this or that instrument, you need to start from the amount of investment, from the term, from your inclination to risk, therefore, it is not possible to give unambiguous recommendations.

How much money does Russia need for a normal life?

What does “normal life” mean? Everyone has their own idea. But the conventional wisdom is:

• the presence of their own housing in a room for each family member;
• having a car;
• the opportunity to travel once a year;
• the opportunity to get a paid education without a loan;
• be able to renovate housing and buy new furniture every five years;
• update the wardrobe every season;
• there is something that is healthy and tasty.

As the newspaper "Argumenty i Fakty" writes, for a normal life of a family of three, the Russians named the amount of 83.6 thousand rubles. The survey was conducted in different regions of the country by specialists from the Romir research holding.

Conclusion

So, money is a tool for achieving goals. Indeed, having enough funds, you can live the life you dream about. You can allow yourself to do what you like, and not what you need, to get freedom of choice in everything.

Roman Kozhin

The author of the blog "My Ruble", in the past the head of the credit department at the bank. In the present, an Internet entrepreneur, investor. I am talking about how to effectively manage your money, it is profitable to increase it, and earn more. Thanks to the Internet, he moved to the sea. You can follow my life in social networks using the links below.

Types of money

Money in its development appeared in two forms: real money and value signs (substitutes for real money).

Real money.

Real money is money in which the nominal value (the value indicated on it) corresponds to the real value, i.e. the cost of the metal from which they are made. Metal money (copper, silver, gold) had different forms: first piece, then weight. The coin of the later development of monetary circulation had distinctive features established by law (appearance, weight content). The round shape of the coin turned out to be the most convenient for handling (it was less erased), the front side of which was called obverse, negotiable - reverse and bleed - herd. In order to prevent the coin from spoiling, the herd was made sliced.

Real money is characterized by stability, which was ensured by the free exchange of value signs for gold coins, the free minting of gold coins with a certain and unchanged gold content of the monetary unit, and the free movement of gold between countries. Due to its stability, real money performed all five functions without hindrance.

The appearance of value signs in gold circulation was caused by an objective necessity:

gold mining did not keep up with the production of goods and did not meet the full need for money;

gold money of high portability could not serve a low-cost turnover;

due to objectivity, gold circulation did not have economic elasticity, i.e. expand and contract quickly;

the gold standard as a whole did not stimulate production and trade.

The golden circulation existed in the world for a relatively short time - until the First World War, when the belligerent countries, to cover their expenses, issued tokens of value. Gold gradually disappeared from circulation.

Substitutes for real money (value signs).

Substitutes for real money (value signs) - money, the nominal value of which is higher than the real one, i.e. spent on their production of social labor. These include:

metal value signs - an erased gold coin, a billon coin, i.e. small coin made from cheap metals such as copper, aluminum;

paper value signs, usually made of paper. Distinguish between paper money and credit money.

Paper money - representatives of real money. Historically, they appeared as substitutes for the gold coins in circulation. The objective possibility of circulation of this money is due to the peculiarities of the function of money as a medium of circulation, when money was a fleeting intermediary of goods. For the first time, paper money (banknotes) appeared in Russia in 1769. Compared to gold money, such money created certain advantages for commodity owners (easier to store, convenient when paying for small lots).

The right to issue paper money is appropriated by the state. The difference between the nominal value of the money issued and the value of their issue (paper costs, printing) is share premium of the treasury, which is an essential element of government revenue. At the initial stage, paper money was issued by the state along with gold money and, with the aim of introducing it into circulation, was exchanged for it. However, the appearance, and then the growth of the budget deficit, caused an expansion of the issue of paper money, the amount of which depended on the state's need for financial resources.

Paper money has only two functions: a medium of exchange and a means of payment. The absence of a gold exchange does not allow them to go out of circulation. The state, constantly experiencing a shortage of funds, increases the issue of paper money without taking into account the commodity and payment turnover. The economic nature of paper money excludes the possibility of stability of paper money circulation, since their issue is not regulated by the needs of commodity circulation, and there is no mechanism for automatic withdrawal of surplus paper money from circulation. As a result, paper money stuck in circulation, regardless of the turnover, overflows the circulation channels and depreciates. Reasons for the depreciation: excessive issuance of paper money by the government, loss of confidence in the issuer and an unfavorable ratio of the country's exports and imports.

So, the essence of paper money lies in the fact that they act as signs of value issued by the state to cover the budget deficit, usually they cannot be exchanged for gold and are endowed by the state with a compulsory exchange rate.

Credit money arise with the development of commodity production, when the sale and purchase is carried out with payment in installments (on credit). Their appearance is associated with the function of money as a means of payment, where money is an obligation that must be redeemed after a predetermined period with valid money. Initially, the economic significance of this money is to make the money turnover elastic, capable of reflecting the needs of the turnover in cash; save real money; promote the development of cashless circulation.

Gradually, with the development of capitalist commodity-money relations, the essence of credit money undergoes significant changes. Under the conditions of capital domination, credit money does not express the relationship between goods on the market, as it was before (C - M - C), but the ratio of money capital (M - C - M), therefore money capital appears in the form of credit money.

Credit money has gone the following path of development: a bill, an accepted bill, a banknote, a check, electronic money, and credit cards.

Bill of exchange - a written unconditional commitment of the debtor to pay a specified amount at a predetermined time and place. Distinguish promissory note, issued by the debtor, and transferable (draft), written out by the creditor and sent to the debtor for signature with return to the creditor. A bill of exchange (draft) is able to be circulated thanks to a transfer inscription (endorsement) on the back of the document. As the endorsements increase, the circular force of the bill increases, since each endorser is jointly and severally liable for the bill.

Currently in circulation there are and treasury bills, issued by the state to cover the budget deficit and cash gap, friendly bills, issued by one person to another in order to record them in the bank, bronze bills, not having commercial coverage.

The bill is characterized by the following features:

abstractness, i.e. lack of information on the type of transaction on the document;

indisputability, meaning the obligatory payment of a bill;

reversibility, i.e. transfer of a bill of exchange as a means of payment by another creditor, which creates the possibility of mutual offset of bill of exchange obligations. The payment guarantee increases even more with the acceptance (consent) of the bill of exchange by the bank (accepted bill).

The bill has certain circulation boundaries:

functions between persons who are well informed about the solvency of each other and who carry out trade and economic relations;

serves mainly wholesale trade, is paid between participants in the circulation of bills in cash.

In Russia, commercial, banking, treasury bills and other types of it operate in various spheres.

Commercial bill issued against the security of the goods. Bank bill(first offered to its clients by Inkombank at the beginning of 1992) is issued by the issuing bank if there is a certain amount of the client on the deposit. Unlike a commercial bill of exchange, a bank bill in its Russian version has a deposit form. It is essentially a promissory note, as it is issued by a bank client to his supplier in payment for goods, but can be endorsed to a third party. The bank bill gives the company a new means of payment guaranteed by the bank. In addition to receiving income from a deposit, on the basis of which the bank issues a bill, the company gets the opportunity to settle with its partners, this is especially important in case of delays in the passage of payment documents through the Settlement and Cash Center of the Bank of Russia. Each bank that issues them has its own characteristics, first of all, this is the provision by the bank of advantages to its clients-bill holders.

Banknote- credit money issued by the central (issuing) bank of the country. For the first time, banknotes were issued at the end of the 17th century. on the basis of rediscounting of private commercial bills. Initially, the banknote had a double collateral: a commercial guarantee, since it was issued on the basis of commercial bills related to commodity circulation, and a gold guarantee, which ensured its exchange for gold. Such banknotes were called classic, had high stability and reliability. The central bank had a reserve of gold for exchange, which excluded the depreciation of the banknote.

Unlike a bill of exchange, a banknote is an indefinite debt obligation and is secured by a public guarantee of the central bank, which in most countries has become state-owned.

The modern banknote has lost essentially both guarantees: not all the bills re-counted by the central bank are backed by goods, and there is no exchange of banknotes for gold. Nowadays, the banknote comes into circulation through bank lending to the state, bank lending to the economy through commercial banks, exchange of foreign currency for banknotes of a given country.

Currently, the central banks of countries issue banknotes of a strictly defined denomination. In essence, they are national money throughout the state. There is no material security in the form of goods or gold. Special paper is used to make banknotes, and measures are taken to make it difficult to counterfeit.

Money is a developing category and since its inception has undergone significant changes, manifested in the transition from the use of some types of money to others, as well as in changing the conditions of their functioning and in increasing their role.

In certain areas of money circulation and in different periods under certain conditions, different types of money are used.

Types of money:

• Complete:
  • Commodity money;
  • Metal money;
• Defective:
  • Paper money;
  • Credit money.

Good money- money in which the nominal value (the value indicated on them) is equal to the real value of this money, that is, the cost of the costs of their production.

Defective- money, the nominal value of which is greater than the real one. Their purchasing power exceeds the cost of their production. So, the first kind of money is commodity money.

In ancient times, the only way to get what you want without resorting to force or theft was barter, that is, the exchange of goods without intermediaries (in our time, when exchanging goods, money is considered an intermediary). Suppose a settlement had a large grain harvest in one year, and they exchanged this grain for metal received by people from a neighboring settlement. And everything seems to be good. But it may happen that the neighbors do not need so much grain, and then the grain will not be in demand and will be lost. And if there are not two parties to the exchange, but more, and each party with its own goods. It will be almost impossible to make an exchange.

The disadvantages of barter have led to the emergence of intermediaries capable of satisfying a wide range of requests. Grain and livestock became these intermediaries. This is how commodity money appeared.

Metal money

Metal money or coins (copper, silver, gold) were made in different shapes: first they were piece, then weight. Later, the coin began to have distinctive features established by the state: the appearance of the coin, its weight. The round shape of the coin turned out to be the most convenient to use, its obverse was called obverse, reverse - reverse, edge - edge.

The first round coins appeared in Lydia, back in the 7th century BC, on the territory of present-day Turkey. They were made of electrum (a type of gold with a high silver content). From Lydia, coinage quickly spread to Greece. Each coin had an image of the patron god of the city. Somewhere in the middle of the 5th century BC, coins led to a single standard and were minted only from silver and gold. This was done to facilitate trading and to more accurately determine the value of the coin. Each coin had symbols indicating the place of production.

Greek coinage has had a huge impact on modern money. It was the Greeks who were the first to emboss images of living people on coins. After the conquests of Alexander the Great, the technology of minting using two molds for the obverse and the reverse spread to all territories under his control. Based on this technology, Rome and later Western Europe began to mint coins. In Kievan Rus, the first minted coins appeared in the 9-10th centuries. At the same time, gold coins were in circulation - coins made of gold, and silver coins - coins made of silver.

Gold coins have gained immense popularity. Fully, the countries switched to gold circulation in the middle of the 19th century. The leader among these countries was Great Britain. As you know, she had a huge number of colonies and dominions, so Great Britain ranked first in gold mining. The reasons for the transition to gold circulation were the properties of the noble metal:

• Uniformity in quality;
• Divisibility and connectivity without losing their properties;
• Greater concentration of value;
• Persistence;
• The complexity of mining and processing.

The properties of gold made this metal most suitable for fulfilling the purpose of money. But the golden circulation did not last long in the world. After the First World War, the demonetization of gold began - the process of the gradual loss of the functions of money by gold. Gold was a competitor to the dollar, so the United States tried to abolish gold as the basis of the world monetary system. After World War II, the United States established an exchange rate for foreign central banks, at which the dollar was traded for gold. This strengthened the global position of the dollar. In the 70s, at the Jamaican Conference, it was decided to exclude gold from circulation.

Paper money

Paper money is the most important discovery of humanity. The mode of production of paper money combined both of these discoveries. The first paper money appeared in China as early as 800 AD. Metal coins were very difficult to transport over long distances, so the government thought about creating paper money. It began to pay merchants not in coins, but in special certificates, which were easily exchanged for "hard" money. These certificates depicted people, trees, officials put their signatures and seals. To the west, paper money was most likely brought by travelers returning from China. They appeared in Russia in 1769.

Paper money is very easy to use. Compared to coins, they are easier to store and convenient for calculating. This money is issued by the state. Paper money is protected by special signs such as watermarks, various color schemes, etc. This is done to protect government money. It is very difficult to counterfeit that kind of money.

Paper money has two functions: a medium of exchange and a means of payment. They cannot be exchanged for gold, so they do not go out of circulation. Sometimes, the state, lacking funds, issues more and more paper money. But this can be dangerous if you do not take into account the trade turnover in the country. As a result, paper money gets stuck in circulation and depreciates.

So, the essence of paper money lies in the fact that they are issued by the state, are not redeemable for gold, and are endowed with a certain course.

Credit money

Credit money arises when a purchase and sale is made on credit. Their appearance is associated with the function of money as a means of payment, where money is an obligation that must be repaid after a predetermined period with valid money. At the very beginning of the development of credit money, their goal was: to save paper and metal money; promote the development of credit relations.

Promissory note- a written unconditional commitment of the debtor to pay a certain amount after a certain period of time at a specified place. There is a promissory note issued by the debtor and a bill of exchange written out by the creditor and sent to the debtor for signature with return to the creditor.

Today, there are also treasury bills issued by the state to cover the budget deficit and cash gap. Friendship bills, written out by one person to another for the purpose of accounting them in the bank.

The bill is characterized by the following features:

• reversibility, i.e. transfer of a bill of exchange as a means of payment to other creditors, which creates the possibility of mutual offset of bill of exchange obligations;
• the document does not contain any information about the transaction;
• payment of the bill is required.

A bill of exchange has certain circulation boundaries:

• used by people who are well aware of each other's financial situation;
• serves mainly wholesale trade;
• repaid between participants in the circulation of bills in cash.

A commercial bill is issued against the security of the goods. A bank bill is issued by the issuing bank if there is a certain amount of the client on the deposit. Unlike a commercial bank bill, in its Russian version it has a deposit form. It is essentially a promissory note, as it is issued by a bank client to his supplier in payment for goods, but can be endorsed to a third party. The bank bill gives the company a new means of payment guaranteed by the bank.

Banknote- money issued by the central bank. They began to be produced in the 17th century. Unlike a bill of exchange, a banknote means an indefinite debt obligation, secured by a guarantee of the central bank, which in many countries is state-owned. Central banks of countries issue banknotes of a certain type and size. Banknotes are national money in the territory of a given country. For the manufacture of banknotes, special paper is used; measures are also taken to protect banknotes from counterfeiting.

A banknote comes into circulation at the moment when banks provide loans to the state and when foreign currency is exchanged for banknotes of a given country. Banknotes cannot be exchanged for gold.

Receipt- a document of a certain form, which contains an order, emanating from the legal owner of the account, on the payment of the amount indicated in it to the bearer of this check. Circulation of such checks is called check. The following persons take part in the circulation of checks: the account holder, the person who takes the credit from the account owner, that is, his creditor, and the payer for this check, most often a bank or other credit institution.

Checks first appeared in England around the 16th century. Over time, the credit system began to develop, therefore, checks became widespread.

• Nominal- to an individual who does not have the right to transfer the check to anyone;
• Bearer- a check that does not indicate the name of the recipient;
• Order- issued to a specific person who has the right to transfer to another person.

Basically, checks are used to receive cash paper money, in a bank or in another lending institution. The most simple operation is settlement between clients of one bank; when settlements between clients of different banks, checks are taken into account by the clearinghouse. Bank checks are also used, mainly in international payments. They make commercial payments.

In 1992, Russia adopted the Regulations on Checks. It defined the rules for checking circulation. A special Check Syndicate was created, uniting the largest commercial banks. The procedure for receiving a check is as follows: the client enters into an agreement with a certain bank included in the syndicate, pays the bank the amount for which the account is opened, and receives a checkbook.

Electronic money

In connection with the expansion of check circulation in the second half of the 20th century, new forms of payment began to be required. Thanks to scientific and technical progress and the development of computer technology, it became possible to create automated electronic devices for processing checks. These electronic devices and the ability to transmit signals at a distance without the use of paper forms contributed to the emergence of electronic money.

What is electronic money for? Such money, like any others, is needed to fulfill the function of money as a means of payment. That is, you can pay with paper money, but you can also use electronic money.

Electronic money is very easy to use. Currently, most of the interbank transactions are carried out with their help. And all this at a global level. Already in more than two hundred countries, electronic payments are being carried out, and electronic money is in circulation. This suggests that electronic money has gained confidence in itself.

Electronic payments

There are many electronic payment systems that handle electronic payments. These payments are very convenient.

Most people in Russia already use these e-wallets. With the help of electronic payments, a person can pay for mobile communications for himself and for my family, satellite TV, Internet access, utility bills and much more. Of course, such electronic money is different from ordinary money, but you can buy everything with it as with ordinary money. Of course, all these payments (or almost all) are made via the Internet.

But the whole power of electronic money is not only in this. They allow you to make instant transfers between individuals anytime, anywhere, with a minimum commission.

Sources of information:

• bibliotekar.ru - Types of money;
• fingramm.ru - What are the types of money;
• money.banks-credits.ru - Link to the article "Types of money".

In this article we will consider what types of money are, what is their essence, consider some examples, and also trace the evolution of the types of money.

The main types of money

Globally, there are two main types of money:

1. Valid money, i.e. money, the denomination of which corresponds to their real (intrinsic) value. An example of this type of money is money in the form of bars and coins made by gold (see Gold Standard). The overwhelming majority of the monetary systems of the early eras functioned on the basis of real money (see Forms of money and their evolution).
2. Fiat money, i.e. money, the real value of which, as a rule, is significantly lower than their face value. For example, the cost of making a $ 100 bill is less than 10 cents. Fiat money is the backbone of all modern monetary systems.

Money arose at a certain stage in the development of society (see The Origin of Money), when a certain intermediary commodity emerged in the exchange process, which began to play the role of a universal measure, or, so to speak, the equivalent of the value of the exchanged goods. This is how the historically earliest type of money arose - commodity money.

Commodity money

In different historical epochs and among different peoples, various goods and objects acted as money (ie intermediary goods): cattle, grain, salt, tea, tobacco, jewelry, arrowheads and spearheads, there were also quite “exotic” objects , for example, cowrie shells, etc. At a higher level of development of our civilization, the above objects were replaced by precious metals - mainly gold and silver.

Commodity money(they are still quite often called real money, natural money, real money or real money) - this is a type of money, in the role of which a certain commodity acts, which has an intrinsic value and has a certain utility. Therefore, such a product can be used both as money and directly as a product (according to its main purpose). For example, salt could be used both as money (for carrying out commodity exchange operations) and as a commodity for personal consumption - direct consumption, salting of meat, for skinning, etc.

With the development of exchange, the role of money was entrenched in one commodity - precious metals (gold and silver). This was due to their physical and chemical properties such as:

• portability (small weight contains great value - unlike, for example, salt);
• transportability (ease of transportation - as opposed to tea);
• divisibility (dividing a gold bar into two parts does not lead to a loss of value - unlike livestock);
• comparability (two gold bars of the same weight have the same value - unlike furs);
• recognizability (gold and silver are easy to distinguish from other metals);
• relative rarity (which provides precious metals with a fairly high value);
• wear resistance (precious metals do not corrode and do not lose their value over time - unlike furs, leather, shells).

There were different types of monetary systems based on precious metals in different countries:

• monometallism (when only one metal was used as money - either gold or silver);
• bimetallism (when both metals were used as money).

Initially, precious metals were used in the form of ingots. The exchange service required constant weighing and dividing of ingots. Therefore, in the 7th century BC. In ancient Rome, in the temple of the goddess, Coins began to be flattened, the weight of the metal was set and a portrait of the ruler was minted. This is how the first coins and money circulation based on coins appeared.

Although commodity money has long gone out of use, at the moment, under certain conditions, some goods continue to function as money. For example, in prisons, prisoners have such a product as cigarettes, in places of hostilities, weapons and ammunition can be used as money, during severe economic crises - sugar, salt, tea, matches, etc.

Commodity money went out of circulation due to the fact that it had a number of shortcomings. As a rule, these are:

• non-portable (non-compact): took up a lot of space (large volume) - inconvenient during storage;
• heavy - inconvenient during transportation;
• indivisible (for example, live cattle);
• deteriorate during storage;
• too expensive to manufacture (since the real value of money (goods) must correspond to the nominal value, otherwise such goods will not be able to perform the functions of money);
• insufficient amount of money (goods) to meet the needs of the country's economy as production grows and the level of economic development.

Currently, the role of commodity money can be investment coins made of precious metals, which have legal tender force within the country.

Rice. Types of moneySecured money

Secured money- evolutionarily the next type of money after commodity money. Secured money (also called change money, representative money) is money, in the role of which are signs or certificates, which can be exchanged upon presentation for a fixed amount of a certain commodity or commodity money, for example, for gold or silver. In fact, secured money is the representative of commodity money.

The emergence of secured money was primarily due to ease of use - convenience and greater safety of transportation, the absence of real damage and erasure of gold in the process of circulation.

It is believed that the first secured money appeared in Ancient Sumer, where figurines of sheep and goats made of baked clay were used for payment. These figurines could be exchanged upon presentation for live sheep and goats.

Initially, banknotes certified the presence of an appropriate amount of full-weight coins and were secured money. However, today, after the abolition of the gold standard, banknotes are no longer guaranteed by exchange for a fixed commodity, so this type of money as "secured money" has turned into a new type of money - "symbolic money" (or "fiat money"), retaining the previous name.

Fiat money

Fiat money(they are also called symbolic money, paper money, decree money, fake money) - this is money that does not have an independent value or it is significantly lower than the face value. On the one hand, fiat money has no value (intrinsic real value), but on the other hand, it is capable of performing the functions of money, since the state accepts it as payment of taxes, and also declares it to be legal tender on its territory.

Today, the main form of fiat money is banknotes and non-cash money held in a bank account. At the same time, the concept of "non-cash money" is conditional, since it is essentially about non-cash (non-cash) payments, that is, about settlements of debtors with creditors without using cash. When making payments in cash, the owner of banknotes (banknotes) directly uses them at his own discretion, and in case of non-cash payments, the authorized person makes appropriate demands on the bank, the execution of which no longer depends on him. The same applies to units of value for electronic non-fiat payment systems (a type of electronic money).

As a rule, the emission of money is carried out by the state represented by the central bank of the country. Issuing fiat money generates two types of income: seigniorage and inflation tax. Seigniorage- this is the profit due to the difference in price between the value of the money made and their market, exchange value. Inflation tax- income received by the issuing bank or the state by issuing additional money to finance its expenses. These actions cause inflation, which is why it is customary to call such profit inflationary.

With the spread of payment cards and electronic money, banknotes are gradually being pushed out of circulation, especially in developed countries, where the proportion of cash circulation is insignificant.

Rice. Modern types of money

Modern economic science distinguishes this type of money as "credit money" into a separate group. Credit money- these are the rights of claim in the future with respect to individuals or legal entities, a specially formalized debt, usually in the form of a transferable security, which can be used to purchase goods (services) or pay off your own debts. Payment for such debts is usually made on a certain date, although there are options when payment is made at any time on demand. Credit money carries the risk of non-fulfillment of the requirement.

Examples of credit money are bill of exchange and check.

Credit money arises with the development of commodity production, when the sale and purchase is carried out with payment by installments (on credit). Their appearance is associated with the function of money as a means of payment, where they act as an obligation that must be repaid at a specified time.

A feature of credit money is that its release into circulation is linked to the actual needs of the turnover. The loan is secured against certain types of inventory, and the loans are repaid when the balances of values ​​decrease. Thanks to this, it is possible to achieve a linkage of the volume of means of payment provided to borrowers with the actual need for turnover in money.

Credit money does not have its own value, it is a symbolic expression of the value that is contained in the equivalent commodity. Their release into circulation is usually carried out by banks when performing credit operations. Credit money has gone the following path of development: a bill, an accepted bill, a banknote, a check, electronic money, and credit cards.

There is another system for classifying money: cash and non-cash.

Moreover, it is customary to refer to cash not only bank notes and treasury bills, but also such credit money: as bills of exchange, checks and banknotes.

Non-cash money includes entries in bank accounts, including payment plastic cards, credit plastic cards and electronic money.

Money is a developing category and since its inception has undergone significant changes, manifested in the transition from the use of some types of money to others, as well as in changing the conditions of their functioning and in increasing their role. In certain areas of money circulation and in different periods under certain conditions, different types of money are used.

Types of money:

• Complete:
  • Commodity money;
  • Metal money;
• Defective:
  • Paper money;
  • Credit money.

High-grade money is money in which the nominal value (the value indicated on them) is equal to the real value of this money, that is, the cost of the costs of its production.

Defective - money, the face value of which is greater than the real one. Their purchasing power exceeds the cost of their production. So, the first kind of money is commodity money.

In ancient times, the only way to get what you want without resorting to force or theft was barter, that is, the exchange of goods without intermediaries (in our time, when exchanging goods, money is considered an intermediary). Suppose a settlement had a large grain harvest in one year, and they exchanged this grain for metal received by people from a neighboring settlement. And everything seems to be good. But it may happen that the neighbors do not need so much grain, and then the grain will not be in demand and will be lost. And if there are not two parties to the exchange, but more, and each party with its own goods. It will be almost impossible to make an exchange.

The disadvantages of barter have led to the emergence of intermediaries capable of satisfying a wide range of requests. Grain and livestock became these intermediaries. This is how commodity money appeared.

Types of money - metal money

Metal money or coins (copper, silver, gold) were made in different shapes: first they were piece, then weight. Later, the coin began to have distinctive features established by the state: the appearance of the coin, its weight. The round shape of the coin turned out to be the most convenient to use, its obverse was called - obverse, reverse - reverse, edge - edge. The first round coins appeared in Lydia, back in the 7th century BC, on the territory of present-day Turkey, They were made of electrum ( a variety of gold with a high silver content). From Lydia, coinage quickly spread to Greece. Each coin had an image of the patron god of the city. Somewhere in the middle of the 5th century BC, coins led to a single standard and were minted only from silver and gold. This was done to facilitate trading and to more accurately determine the value of the coin. Each coin had symbols to indicate where it was produced. Greek coinage has had a huge impact on modern money. It was the Greeks who were the first to emboss images of living people on coins. After the conquests of Alexander the Great, the technology of minting using two molds for the obverse and the reverse spread to all territories under his control. Based on this technology, Rome and later Western Europe began to mint coins. In Kievan Rus, the first minted coins appeared in the 9-10th centuries. Gold coins - coins made of gold, and silver coins - coins made of silver were in circulation at the same time. Gold coins gained immense popularity. Fully, the countries switched to gold circulation in the middle of the 19th century. The leader among these countries was Great Britain. As you know, she had a huge number of colonies and dominions, so Great Britain ranked first in gold mining. The reasons for the transition to gold circulation were the properties of the noble metal:

• Uniformity in quality;
• Divisibility and connectivity without losing their properties;
• Greater concentration of value;
• Persistence;
• The complexity of mining and processing.

The properties of gold made this metal most suitable for fulfilling the purpose of money. But the golden circulation did not last long in the world. After the First World War, the demonetization of gold began - the process of the gradual loss of the functions of money by gold. Gold was a competitor to the dollar, so the United States tried to abolish gold as the basis of the world monetary system. After World War II, the United States established an exchange rate for foreign central banks, at which the dollar was traded for gold. This strengthened the global position of the dollar. In the 70s, at the Jamaican Conference, it was decided to exclude gold from circulation.

Types of money - paper money

Paper money is the most important discovery of humanity. The mode of production of paper money combined both of these discoveries. The first paper money appeared in China as early as 800 AD. Metal coins were very difficult to transport over long distances, so the government thought about creating paper money. It began to pay merchants not in coins, but in special certificates, which were easily exchanged for "hard" money. These certificates depicted people, trees, officials put their signatures and seals. To the west, paper money was most likely brought by travelers returning from China. They appeared in Russia in 1769. Paper money is very convenient in circulation. Compared to coins, they are easier to store and convenient for calculating. This money is issued by the state. Paper money is protected by special signs such as watermarks, various color schemes, etc. This is done to protect government money. It is very difficult to counterfeit such money. Paper money has two functions: a medium of exchange and a means of payment. They cannot be exchanged for gold, so they do not go out of circulation. Sometimes, the state, lacking funds, issues more and more paper money. But this can be dangerous if you do not take into account the trade turnover in the country. As a result, paper money gets stuck in circulation and depreciates.

So, the essence of paper money lies in the fact that they are issued by the state, are not redeemable for gold, and are endowed with a certain course.

Types of money - credit money

Credit money arises when a purchase and sale is made on credit. Their appearance is associated with the function of money as a means of payment, where money is an obligation that must be repaid after a predetermined period with valid money. At the very beginning of the development of credit money, their goal was: to save paper and metal money; promote the development of credit relations.

Gradually, with the development of capitalist commodity-money relations, the essence of credit money changes. Credit money developed gradually: a bill, an accepted bill, a banknote, a check, electronic money, and credit cards.

A bill of exchange is a written unconditional commitment of the debtor to pay a certain amount after a certain period of time at a specified place. There is a promissory note issued by the debtor and a bill of exchange written out by the creditor and sent to the debtor for signature with return to the creditor.
Today, there are also treasury bills issued by the state to cover the budget deficit and cash gap. Friendship bills, written out by one person to another for the purpose of accounting them in the bank.

The bill is characterized by the following features:

• reversibility, i.e. transfer of a bill of exchange as a means of payment to other creditors, which creates the possibility of mutual offset of bill of exchange obligations;
• the document does not contain any information about the transaction;
• payment of the bill is required.

A bill of exchange has certain circulation boundaries:

• used by people who are well aware of each other's financial situation;
• serves mainly wholesale trade;
• repaid between participants in the circulation of bills in cash.

In Russia, commercial, banking, treasury bills and other types of it operate in various spheres.
A commercial bill is issued against the security of the goods. A bank bill is issued by the issuing bank if there is a certain amount of the client on the deposit. Unlike a commercial bank bill, in its Russian version it has a deposit form. It is essentially a promissory note, as it is issued by a bank client to his supplier in payment for goods, but can be endorsed to a third party. A bank bill gives an enterprise a new means of payment guaranteed by a bank. A bill is money issued by the central bank. They began to be produced in the 17th century. Unlike a bill of exchange, a banknote means an indefinite debt obligation, secured by a guarantee of the central bank, which in many countries is state-owned. Central banks of countries issue banknotes of a certain type and size. Banknotes are national money in the territory of a given country. For the manufacture of banknotes, special paper is used, measures are also taken to protect banknotes from counterfeiting. The banknote comes into circulation at the moment when banks provide loans to the state and when foreign currency is exchanged for banknotes of a given country. Banknotes cannot be exchanged for gold. A check is a document of a certain form, which contains an order, emanating from the legal owner of the account, to pay the bearer of this check the amount specified in it. Circulation of such checks is called check. The following persons take part in the circulation of checks: the owner of the account, the person who takes the credit from the owner of the account, that is, his creditor, and the payer of this check, most often a bank or other credit institution. Checks first appeared in England, around the 16th century. Over time, the credit system began to develop, therefore, checks became widespread.

There are three main types of checks:

• Nominal - to an individual who does not have the right to transfer the check to anyone;
• Bearer - a check that does not indicate the name of the recipient;
• Order - issued to a specific person who has the right to transfer to another person.

Basically, checks are used to receive cash paper money, in a bank or in another lending institution. The most simple operation is settlement between clients of one bank; when settlements between clients of different banks, checks are taken into account by the clearinghouse. Bank checks are also used, mainly in international payments. They make commercial payments.

In 1992, Russia adopted the Regulations on Checks. It defined the rules for checking circulation. A special Check Syndicate was created, uniting the largest commercial banks. The procedure for receiving a check is as follows: the client enters into an agreement with a certain bank included in the syndicate, pays the bank the amount for which the account is opened, and receives a checkbook.

Types of money - electronic money

In connection with the expansion of check circulation in the second half of the 20th century, new forms of payment began to be required. Thanks to scientific and technical progress and the development of computer technology, it became possible to create automated electronic devices for processing checks. These electronic devices and the ability to transmit signals at a distance without the use of paper forms contributed to the emergence of electronic money. What is electronic money for? Such money, like any others, is needed to fulfill the function of money as a means of payment. That is, you can pay with paper money, but you can also use electronic money.

Ease of Use - Electronic money is very easy to use. There are a large number of payment systems that cash out electronic money. We'll talk about them later. But one thing is important: today, working with these systems is so simple that even a child could probably cash out.

Electronic money is very easy to use. Currently, most of the interbank transactions are carried out with their help. And all this at a global level. Already in more than two hundred countries, electronic payments are being carried out, and electronic money is in circulation. This suggests that electronic money has gained confidence in itself.

Types of money - electronic payments

There are many electronic payment systems that handle electronic payments. These payments are very convenient. Most people in Russia already use these e-wallets. With the help of electronic payments, a person can pay for mobile communications for himself and for my family, satellite TV, Internet access, utility bills and much more. Of course, such electronic money is different from ordinary money, but you can buy everything with it as with ordinary money. Of course, all these payments (or almost all) are made via the Internet.
But the whole power of electronic money is not only in this. They allow you to make instant transfers between individuals anytime, anywhere, with a minimum commission.

Thanks to the development of electronic settlements, people can not only communicate at a distance, but also make real money transactions. So people can work from home, send the results of their work over the Internet, and receive wages through payment systems. Agree, it's convenient! This phenomenon is becoming widespread. In Russia, the development of payment systems is happening even faster than in the West. But it is worth mentioning the disadvantages of electronic payments. Their implementation requires access to the Internet, and cheap mobile communications.

1.How did the money come from? 2. Name the basics of the functions of money. 3. What types of money are there today? 4. How are coins different from banknotes?

Answer:

The main functions of money The essence of money lies in the fact that it is a historical category that resolves the contradiction of commodity production between use value and value due to the fact that they are a specific commodity, with the natural form of which the social function of the universal equivalent coalesces. The essence of money finds its direct expression in the functions it performs. Acting as a measure of value, money thereby measures the value of all other goods as a universal equivalent. The value of a commodity, expressed in money, is called its price. In the market, prices can deviate up or down from value, depending on the balance of supply and demand. As a means of circulation (purchasing medium), money serves the turnover of goods, that is, it acts as an intermediary in the acts of purchase and sale of goods. The participation of money in exchange is only the moment of circulation (it is fleeting). Therefore, this function can be performed by defective paper and credit money. The function of money as a means of payment (means of payment) appeared in connection with the development of credit relations, that is, with the possibility of deferred payment. There is a gap between the sale (purchase) of a product and its monetary payment. Money is one of the greatest human inventions. The origin of money is associated with 7-8 thousand BC, when primitive tribes had surpluses of some products that could be exchanged for other necessary products. Historically, cattle, cigars, shells, stones, pieces of metal have been used as a means of facilitating exchange - with varying success. But in order to serve as money, an item must gain general acceptance by both buyers and sellers as a medium of exchange. Money is determined by society itself; all that society recognizes as circulation is money. Indeed, money is a commodity that acts as a universal equivalent, reflecting the value of all other commodities. Basic money in our time: High-grade Commodity money; Metallic money; Defective paper money; Credit money. banknote from a coin: The cost of producing gold and silver coins increases due to the value of the metal that is used for their minting. Therefore, their release is always carried out with great care. In contrast, paper money, having no intrinsic value, can be issued in large quantities. When the number of banknotes in circulation becomes excessive - which can happen in times of serious political and economic crises - purchasing power begins to fall and prices rise. In the most serious cases, inflation can lead to the collapse of entire public institutions, as happened, for example, in Germany in the 1920s.

Money has been known to mankind for a long time, but the need for them in a subsistence economy was of an episodic nature, since only accidentally remaining surpluses were exchanged. The exchange of goods was carried out according to the formula: Т-Т. The development of productive forces and production relations entailed a social division of labor and created conditions for the emergence of a surplus product, and with it the need for exchange. All material values ​​produced in society took the form of goods, and this required measuring the labor costs embodied in them. This measurement was made by comparing the value of a particular commodity with the value of a particular commodity used as a universal equivalent - money.

Money - product, which is the universal equivalent of the value of other goods. With the advent of money, the exchange of goods began to take place according to the formula: T-D-T, i.e. the good is exchanged for a certain amount of money, and then another good is purchased with the proceeds. The world of commodities was divided into a commodity part and a special commodity that plays the role of a universal equivalent - money.

As money in different historical eras and in different countries, different goods appeared, and then noble metals, which later turned out to be the most suitable for this role. Participation in the performance of the role of money by precious metals is associated with properties such as divisibility, homogeneity, persistence.

In the economic literature, the following stages in the evolution of money are distinguished:

1st stage - the emergence of money with the performance of their functions by random goods;

2nd stage - securing a universal equivalent for gold.

3rd stage - transition to paper or credit money;

4th stage - gradual ousting of cash from circulation.

1st stage inherent subsistence farming, when products were produced for their own consumption, and the surplus was used to exchange for products of other manufacturers, most often by accident. The development of the production of various goods required the observance of the equivalence of their value and contributed to the selection among the universal variety of a certain general equivalent in the form of goods with a high liquidity and, accordingly, the ability to implement. Such goods included cattle, furs, precious stones and metals.

2nd stage - allocation as a universal equivalent of gold, which at that time had such qualities as rarity, homogeneity, divisibility, shelf life, high value and availability of sufficient quantities.

3rd stage - the transition to paper money, which was associated with the inability of money from precious metals to respond to the current economic conditions. For the convenience of payment for goods began to be applied bill of exchange, which is an unconditional written obligation of the debtor to pay the amount indicated on it within the specified period. For the flexibility of circulation of bills, banknotes were introduced, the issue of which was carried out by the Central Bank through rediscounting of bills.

4th stage - continues to develop at the present time, aimed at the gradual ousting of cash from circulation. The movement of money in accounts occurs with the help of checks, which are a kind of bill of exchange containing the unconditional order of the drawer to the credit institution to pay the check holder the amount specified in it.

In the 60s of the XX century a new type of electronic device for processing checks appears - electronic money. It is an electronic system that functions through the transmission of electronic signals and allows credit and payment transactions to be carried out without the use of paper media.

Reduced need in cash banknotes is associated with the emergence of special means of payment in the form of a plastic card with a magnetic stripe or an embedded chip containing information about the client's bank account.

The essence of money is expressed in the unity of three properties:

In the form of universal direct exchange - money can be exchanged for other goods;

In the form of an independent exchange value - money can be exchanged for goods at a symbolic nominal value that does not correspond to their real value;

In the form of materialization of socially necessary labor time, money measures the cost of labor embodied in a commodity.

2. Functions of money

The essence of money manifests itself in the functions they perform. The unity of functions creates the idea of ​​money as a special specific product that participates as a necessary element in the reproduction process of society.

The measure of value - in this function, money in circulation is called the weighted amount of money; they measure the value of all goods as quantities of the same name, qualitatively identical and quantitatively comparable, since all goods as values ​​represent materialized labor and expenditures of labor time. A value expressed in money is a price that is expressed in a known quantity of a monetary commodity - gold.

Amount of gold measured by its weight, and a certain weight of gold is taken as a unit of measurement of its mass, this unit is set by the state as a monetary unit and is called the price scale. Thus, all commodity prices are expressed in a certain number of monetary units or in a certain number of weight units of gold.

For price comparison goods of different value must be reduced to the same scale. The scale of prices for metal metal, taken in a given country as a monetary unit and serving to measure the foams of all other goods.

Between the money as a measure of value and money as a scale of prices there are significant differences. Money as a measure of value refers to all other goods, arises spontaneously, changes depending on the amount of social labor expended on the production of a monetary product. Money, as a price scale, is set by the state, acts as a fixed weight amount of metal, changing with the value of this commodity.

Functionfacilities payment manifests itself in the servicing of payments outside the sphere of commodity circulation, in the provision and repayment of cash loans, in the repayment of wage arrears, payment of taxes, social payments, interest on loans.

Asfacilities appeal money serves the chain of continuous transformations of goods into money and money into goods (T-D-T), being an intermediary in buying and selling, as well as a means of control on the part of the buyer over the production of goods, eliminating imbalances between demand and supply.

How store of value money after the sale of goods and services is temporarily withdrawn from circulation and accumulated for making purchases in the future. Savings for a short period are carried out in the form of opening deposit accounts with credit institutions. Long-term savings - in the form of investments in government securities, real estate, jewelry, precious metals.

World money- This is money in the system of international economic relations. Their emergence was facilitated by the deepening of the international division of labor and the creation of a world financial market. As world money, gold acts as the final means of payment in cases of the formation of a passive balance of payments, as well as replenishment of currency reserves for current international settlements. In addition to gold, a freely convertible currency, the international accounting unit of the SDR, is used as world money.

World money has three purposes: universal means of payment; universal purchasing power and materialization of social wealth. As an international means of payment, money acts in settlements on international balances (balance of payments). As an international means of purchase, money is used to directly purchase goods abroad and pay for them in cash. As a materialization of social wealth, they are a means of transferring national wealth from one country to another when collecting indemnities or providing loans.

3. Types of money.

Depending on whether the money has real value, it is divided into:

· real money that have real value;

· Signs of value that do not have real value.

TO real money relate:

1) a full-fledged coin - a silver or gold coin, the denomination of which corresponds to the value of the gold contained in it;

2) banknotes exchanged for gold are bank notes that were issued by large commercial banks, provided that they have gold bullion. According to the first requirement, banknotes were to be exchanged for gold.

TO value signs relate:

1) bargaining chip is a small metal coin, the denomination of which does not correspond to the value of the metal contained in it.

2) paper money is money issued by the treasury at the request of the government of the Russian Federation to cover budget expenditures. Their release is not conditioned by the needs of commodity circulation and therefore leads to inflation. This money is not backed by anything and there is no mechanism for withdrawing it from circulation. Therefore, they are constantly depreciating, especially when confidence in the Government falls. Paper money is in the form of treasury bills.

3) credit money - issued into circulation by the Central Bank when lending to the Government and commercial banks... When the loan is repaid, the corresponding amount is withdrawn from circulation, i.e. there is a mechanism for withdrawing credit money. Credit money is secured because when issuing a loan, the Central Bank requires collateral. Credit money is in the form of banknotes if it exists in cash. They can exist in a non-cash form.

Depending on whether money has a visible form, it is divided into cash and non-cash money.

Cash is money that has a visible shape.

Non-cash money- this is money that has no visible form and exists in the form of records on bank accounts.

Non-cash money it is customary to classify according to the degree of their liquidity... Under liquidity means the ability of money to make a payment quickly.

1) Cash is the most liquid, but it is also the most unprofitable type of assets that does not generate income.

2) Deposits on demand - these are balances on the settlement, current and other accounts of customers, which can be withdrawn on demand.

3) Deposits with a maturity of up to 1 year - term deposits with a maturity of 2, 5, 9 months.

4) Deposits for more than 1 year - funds not intended for use in the current turnover, they will be used in the future turnover.

4. Forms of emission of money. Impact of monetary issue on price inflation

Inflation - translated from Latin "inflation" means "bloating", is associated with the excessive release of unsecured paper money into circulation.

For the first time inflation appeared in connection with the abolition of the gold coin standard. During that period, conditions were created for a constant and sharp rise in prices, as well as an increase in budget spending due to deficit financing, which contributed to the depreciation of money.

Modern inflation is associated not only with the depreciation of money as a result of rising prices, but also with the critical state of the economy as a whole. The main cause of inflation is the violation of proportions between various spheres of the economy: accumulation and consumption, supply and demand, income and expenditures of the state, sources of loan capital and their use, the size and money supply in circulation and the needs of the economy for money.

Modern inflation is born in the reproductive process itself, but its concrete manifestation is found in the money sphere. In this case, inflation arising from monetary factors is called demand inflation, and not monetary inflation - cost inflation.

TO demand inflation can lead to an increase in military spending, a deficit in the state budget and an increase in domestic debt, the emission of national currency in excess of the needs of trade. TO cost inflation- a decrease in the growth of labor productivity and a drop in production, an energy crisis associated with a sharp rise in oil prices, an increase in prices and wages with a slowdown in labor productivity.

Basic forms stabilization of monetary circulation associated with inflationary processes are monetary reforms and anti-inflationary policies.

Monetary reform- it full or partial transformation of the monetary system carried out by the state in order to stabilize money circulation.

As a tool monetary reforms the state can use nullification, restoration, devaluation, denomination and shock therapy.

Nullification - declaring depreciated banknotes by the state invalid.

Denomination - enlargement of the scale of prices by "crossing out zeros" on banknotes.

Restoration - This is the restoration of the previous gold content of the monetary unit.

Shock therapy methods - were widely used in international practice during the transition from a state to a market economy. In "shock therapy", such tough measures are applied as freezing wages, cutting production, increasing unemployment, etc.

Anti-inflationary politics - This is a set of measures for state regulation of the economy aimed at combating inflation.

Deflationary politics- these are methods of limiting money demand through monetary and tax mechanisms by reducing government spending, increasing the interest rate for loans, limiting the money supply. Such a policy causes a slowdown in economic growth and even crisis phenomena.

2. MONETARY CIRCULATION AND MONETARY SYSTEM

1. The concept of money circulation. Cash and non-cash circulation

Money turnover - this is the movement of money in the performance of their functions in cash and non-cash forms, serving the sale of goods, as well as non-commodity payments and settlements in the economy.

Cash turnover is a set of payments for a certain period of time and reflects their movement as a medium of exchange and a means of payment.

The sphere of using cash is mainly related to the income and expenses of the population:

· Settlements of the population with retail trade and public catering enterprises;

· Remuneration of labor by enterprises;

· Making money by the population for deposits and receiving them on deposits;

· Payment of pensions, allowances, scholarships, insurance benefits;

· Payment for securities and payment of income on them;

· Payments for utilities and housing services;

· Payment of taxes by the population to the budget.

Cashless turnover handles settlements between:

· Legal entities of various forms of ownership;

· Legal entities and individuals for the payment of wages, income from deposits, securities, on the issuance of loans;

· Legal entities and individuals and executive authorities of all levels for payment of payments to the budget and off-budget funds, as well as when receiving funds from the budget;

· Banks and various financial institutions and the population.

That. money constantly they move from one sphere to another: when it is deposited into accounts with credit institutions, cash becomes non-cash; when it is withdrawn from the account, it again becomes cash.

Forecasting cash turnover is carried out on the basis of forecasts of cash turnover, reflecting the volume and sources of receipts of all cash in the cash desks of banks and issuance to organizations, institutions and individuals, taking into account the emission result or withdrawal of money from circulation. The process takes place in stages:

Stage 1: includes the preparation by credit institutions of forecast calculations of expected cash inflows to cash offices and their disbursements based on time series and the "Report on the cash turnover of Bank of Russia institutions" or on the basis of basic applications received from serviced enterprises. The forecast is prepared on a quarterly basis with distribution by months and is sent to the correspondent account with the Bank of Russia two weeks before the forecast quarter.

Stage 2: Having received the forecast, the Central Bank of the Russian Federation, on a quarterly basis with distribution by months, prepares forecasts of cash turnovers for receipts, expenditures and emission results for serviced credit institutions based on an analysis of the turnover of cash passing through their cash desks, and sends them to the regional offices of the Bank of Russia a week before the beginning of the quarter. whose cash offices use them when drawing up applications for reinforcement of the revolving cash desk.

Predictive calculations of emissions money is taken into account when developing measures to organize cash flow in the country.

Table 2.1

Cash turnover forecast

Cashless turnover makes up a significant part of the country's monetary turnover, which contributes to the concentration of monetary resources in banks.

The value of cashless payments lies in the fact that when they expand, the amount of cash required for circulation is significantly reduced, and, consequently, circulation costs are reduced in the form of expenses for the production, transportation, storage and destruction of money.

Cashless circulation is usually divided into two types:

Commodity turnover - payment for goods by individuals and legal entities;

Non-commodity turnover - payments in the process of formation and distribution of national income, crediting, insurance, as well as in the form of other payments of a non-commodity nature.

Modern cashless circulation in the Russian Federation is organized in accordance with several basic principles:

1. Enterprises of all forms of ownership are required to keep their funds in bank accounts. Only small amounts of cash within the limit are allowed in the cash desks of enterprises.

2. The main part of non-cash payments should be carried out through a bank.

3. A request for payment must be issued either before or after shipment.

4. Payment by the client of the bank for the goods and services received is carried out only with the consent of the serviced legal entity or individual.

5. The forms of non-cash payments allowed by the regulation of the Central Bank of the Russian Federation are chosen by the company at its own discretion.

Compliance with these principles allows you to maintain the legality of the money turnover.

Cashless payments are carried out on the basis of settlement documents established by the Central Bank of the Russian Federation and in compliance with the rules of the relevant document flow. The main types of settlement documents in the Russian Federation when making non-cash payments are: payment orders, payment requests, checks, letter of credit, collection orders, plastic cards, etc.

Payment order - a settlement document containing the order of the payer to the bank serving him to transfer funds from his account to the account of the recipient of funds. When making non-cash payment orders, the payment initiative belongs to the payer.

Payment claim - a settlement document that the recipient of funds submits to the bank serving him for collection, i.e. containing a requirement for the payer to pay a certain amount through the bank. When organizing settlements with payment claims, the initiative for payment belongs to the recipient of funds, and not to the payer, as in the case of a payment order.

Collection order - a settlement document drawn up by a bank or an enterprise when they have been granted the right to an indisputable write-off of funds.

Payment order, a payment request and a collection order are traditionally united in the financial theory by one term "endorsements". All of these documents are not negotiable, i.e. their assignment to a third party is not expected.

Letter of credit - a conditional monetary obligation of the bank, issued by it on behalf of the client (payer) in favor of its counterparty under the agreement (recipient).

Bank opening letter of credit(issuing bank), may make payment, pay, accept or account for a bill of exchange, or delegate authority to another bank to carry out such operations, subject to the provision of the documents provided for in the letter of credit and all of its conditions are met.

One of the most dynamic tools for cashless payments is a plastic card.

2. The law of money circulation. Money supply and velocity of money circulation

Money circulation law establishes the amount of money required to perform the functions of a medium of exchange and a means of payment. The amount of money required to perform the functions of money as a medium of circulation depends on three factors determined by the conditions of production:

1) the number of goods and services sold on the market (direct connection);

2) the level of prices of goods and tariffs (direct connection);

3) the speed of circulation of money (feedback).

This relationship was first established by Karl Marx.

Amount of money to act as a means of communication is defined as the ratio of the sum of commodity prices to the average number of revolutions of the monetary units of the same name (the velocity of money circulation):

where K is the amount of money required as a medium of circulation;

S - the sum of prices of goods and services sold;

C is the average number of turnovers of money as a medium of circulation (velocity of circulation of money).

Velocity of money circulation is determined by the number of revolutions of a monetary unit for a certain period of time, since the same money constantly passes from pyk into hands over a certain period, serving the sale of goods and the provision of services.

The increased money supply with the same volume of goods on the market leads to the depreciation of money, that is, it is ultimately one of the factors of the inflationary process.

Thus, the amount of money required for circulation and payment is determined by the following conditions:

a) the total volume of goods and services in circulation (direct dependence);

b) the level of commodity prices and tariffs for services (direct dependence: the higher the prices, the more money is required);

c) the degree of development of non-cash payments (feedback);

d) the speed of circulation of money, including credit (feedback).

With the emergence of functions money as a means of payment, formula (2.1) becomes somewhat more complicated, and the law determining the amount of money in circulation takes the following form:

K = (S 1 -S 2 + S 3 -P) / C, (2.2)

where S 1 - the sum of the prices of goods and services;

S 2 - the sum of the prices of goods sold on credit;

S 3 - the amount of payments for obligations;

P - mutual payments.

With metal handling the amount of money in circulation was regulated automatically, using the functions of money as a treasure, i.e. if the need for money decreased, then the surplus money went into treasures; if it increased, there was a return flow of money.

Based on this observation K. Marx formulated the law of paper money circulation: paper money should be issued in such a quantity in which the gold replaced by it would circulate. The issue of paper money in large quantities leads to a disorder of monetary circulation and to inflation. The law had no practical application in capitalist economic conditions, but the monetary system of the Soviet Union was built on this principle.

Money supply is an the most important quantitative indicator of monetary circulation and represents the total volume of purchasing and means of payment serving the economic turnover. The amount of non-exchangeable credit money should be determined by the value of all values ​​in the country through money capital.

To analyze quantitative changes of monetary circulation, special groupings of assets are used - monetary aggregates distributing the money supply according to the degree of liquidity. Each subsequent indicator of the mass includes the previous one, plus a new amount of financial resources according to the degree of liquidity (Table 2.2).

Table 2.2

The structure of monetary aggregates in the Russian Federation

Analysis of the structure and dynamics of the money supply is of great importance in the development of the Central Bank of the Russian Federation guidelines for monetary policy.

Statistical indicator money supply is the monetary base, which includes the MO aggregate, cash in the cash desks of banks, as well as the required reserves of banks with the Central Bank of the Russian Federation and their funds on correspondent accounts.

The change the volume of money supply can be the result of both changes in the supply of money in circulation, and the acceleration of their turnover.

Velocity of money circulation is an indicator of the intensification of their movement when functioning as a medium of circulation and a means of payment. It is difficult to quantify, so indirect methods are used to calculate it, including:

· The speed of movement of money in the circulation of the value of the social product or the circulation of income as the ratio of the gross national product, or national income to the money supply (aggregates Ml or M2). This indicator indicates the relationship between money circulation and the processes of economic development;

· The turnover of money in the payment turnover is determined by the ratio of the amount of money in bank accounts to the average annual value of the money supply in circulation. This indicator indicates the speed of cashless payments.

Other indicators of the rate of turnover of money are also applied. In Russian practice, depending on the completeness of the coverage of cash turnover, there are:

· The rate of return of money to the cash desks of the Central Bank of the Russian Federation as the ratio of the amount of money received to the bank cash desks to the average annual amount of money in circulation;

· The rate of circulation of money in cash circulation, calculated by dividing the amount of receipts and issuance of cash (including post offices and branches of Sberbank) by the average annual amount of money in circulation.

On the speed of money circulation general economic factors, such as the cyclical development of production, the rate of its growth, price movements, as well as monetary (monetary) factors, affect. Monetary factors include the structure of payment turnover (the ratio of cash and non-cash money), the development of credit transactions and mutual settlements, the level of interest rates for loans in the money market, as well as the introduction of computers for transactions in credit institutions and the use of electronic money in settlements. It also depends on the frequency of payment of income, the extent to which the population spends its funds, the level of savings and accumulation.

3. Monetary system of the country

Monetary system - a historically developed and fixed by national legislation structure of monetary circulation in the country. There are two types of monetary systems:

1) a system of metallic circulation, which is based on real money (silver, gold), performing all five functions, and circulating banknotes are freely exchanged for real money.

2) the system of paper-credit circulation, in which real money is supplanted by the signs of value, and paper (treasury bills) or credit money are in circulation.

With metal monetary circulation, two types of monetary systems are distinguished: bimetallism and monometallism, depending on how much metal is accepted as the universal equivalent and base of monetary circulation.

Bimetallism - a monetary system in which the role of a universal equivalent is assigned to two metals (silver and gold). Free minting of coins and their unrestricted circulation is envisaged. The market established two scales of prices for goods. This system does not ensure the stability of monetary circulation, since a change in the value of one of the monetary metals leads to fluctuations in the prices of goods.

The need for stability of the monetary system, a single universal equivalent, led to the transition to monometallism.

Monometallism - a monetary system in which one metal (silver or gold) serves as a universal equivalent. Under this system, coins from one noble metal and value signs that can be exchanged for coins function.

In most developed countries, at the end of the 19th century, bimetallism and silver monometallism were replaced by gold monometallism (in particular, in Russia since 1897).

There are three types of gold monometallism:

Gold coin;

Gold bullion;

Gold exchange standards.

Gold coin standard(corresponding to the period of free competition and development of production, credit system and trade) was characterized by gold circulation, free minting of coins, unhindered exchange of banknotes for gold, not prohibited by the movement of gold between countries. However, this standard required the availability of sufficient volumes of gold reserves in emission centers. The First World War, which required large military expenditures, caused an increase in the budget deficit of the belligerent states and led to the abolition of the gold coin standard in most countries.

After the end of the first world war truncated forms of gold monometallism are introduced: the gold bullion standard (Great Britain, France), in which banknotes were exchanged for gold bars, and the gold exchange standard (Germany, Austria, Denmark, Norway, etc.), in which banknotes were exchanged for mottos (means of payment in foreign currency) , exchanged for gold. As a result of the world economic crisis (1929-1933), all forms of gold monometallism were eliminated and a system of paper-credit money was established that could not be exchanged for real money. The system of paper money provided for the dominant position of banknotes issued by the country's issuing center.

Modern monetary systems developed countries, despite their characteristics, have many common features. They include the following elements: the currency, the scale of prices, the types of money that are legal tender, the issuing system, and the government apparatus for regulating monetary circulation.

Currency unit- it a statutory banknote that serves to measure and express the prices of all goods and services. It is usually divided into small proportional parts. Most countries use the decimal division system (1 US dollar equals 100 cents).

Price scale - the choice of the country's monetary unit and the means of expressing the value of the goods through the weight content of the monetary metal in this selected unit.

Emission - issue of monetary funds and securities into circulation. The emission of funds is regulated by law and carried out by the state, which distributes this function between the central bank and the treasury. The central bank issues credit money - bank notes (banknotes). The Treasury issues Treasury notes and bargaining chips.

Depending on who issues money, there are two forms of emission:

· budgetary- This is the issue of paper money, carried out by the Treasury at the request of the government of the country to cover budget expenditures. The issue of money is not conditioned by the needs of commodity circulation and therefore leads to inflation. This money is not backed by anything and there is no mechanism for withdrawing it from circulation. Therefore, they are constantly depreciating, especially when confidence in the Government falls. Paper money is in the form of treasury bills.

· credit- This is the issue of money, carried out by the Central Bank with lending to the Government and commercial banks. When the loan is repaid, the corresponding amount is withdrawn from circulation, i.e. there is a mechanism for withdrawing credit money. Credit money is secured because when issuing a loan, the Central Bank requires collateral. Credit money is in the form of banknotes if it exists in cash. They can exist in a non-cash form.

Types of money, which are legal tender, are credit money and primarily banknotes, small change, and paper money (Treasury notes). Thus, in the United States there are banknotes in circulation in the amount of 100, 50, 20, 10, 2 and 1 dollars; Treasury notes issued by the US Treasury for $ 100, and silver-copper and copper-nickel coins of $ 1, 50, 25, 10 and 1 cent.

In economically developed countries as a rule, government paper money (treasury bills) are not issued or are issued in limited quantities. In underdeveloped countries, they have a fairly wide circulation.

Emission system- the legally established procedure for the issuance and circulation of credit and paper banknotes. Emission operations (issue and withdrawal of money from circulation) in states are carried out:

The emission of banknotes is carried out by the central bank in three ways:

· Granting loans to credit institutions in the form of rediscounting of bills;

· Lending to the treasury against the security of government securities;

· Issue of banknotes by means of their exchange for foreign currency.

In many industrialized countries Under the influence of increased inflation and the growth of crisis phenomena in the economy, targeting has become widespread - the setting of targets in order to regulate the growth of money supply in circulation and credit, which should be guided by central banks. The Central Bank, in agreement with government agencies, determines the amount of increase in the money supply, limiting it to growth in real terms.

This measure is being considered as an important form of combating inflation and ensuring economic stability. In the US, all four monetary aggregates are targeted (Ml, M2, M3, M4), in France, only M2. However, this form of regulation showed weak efficiency and in a number of countries they abandoned targeting (Canada, Japan).

Monetary system of the Russian Federation operates in accordance with the Federal Law on the Central Bank of the Russian Federation (Bank of Russia) dated April 12, 1995, which determined its legal basis.

Official currency(currency) in our country is the ruble. The introduction of other monetary units on the territory of the Russian Federation is prohibited. The relationship between the ruble and gold or other precious metals has not been established by law. The official exchange rate of the ruble against foreign currencies is established as a result of trading on the Moscow Interbank Currency Exchange (MICEX) and is published in the press.

Exclusive right emission of cash, organization of their circulation and withdrawal on the territory of the Russian Federation is owned by the Central Bank of the Russian Federation. He is responsible for the state of monetary circulation in order to maintain normal economic activity in the country.

Types of money which have payment power are banknotes and metal coins. Samples of banknotes and coins are approved by the Central Bank of the Russian Federation, the announcement of the release of their new samples and their description are published in the media. They are obligatory for use at their face value throughout the country and for all types of payments, as well as for crediting to accounts, in deposits for transfer. The term for withdrawing old banknotes should not be one year, but not more than five years. When exchanging, no limitation of the amounts and subjects of exchange is allowed. Banknotes and coins may be declared invalid by law (no longer legal tender). Counterfeiting and illegal making of money is punishable by law.

In order to organize money circulation, the Central Bank of the Russian Federation has the following obligations:

Forecasting and organization of production, transportation and storage of banknotes and coins, as well as the creation of their reserve funds;

Establishment of rules for storage, transportation and collection of cash for banks;

Determination of signs of solvency of banknotes and the procedure for replacing damaged banknotes and coins, as well as their destruction;

Development of a procedure for conducting cash transactions for credit institutions;

Organization and regulation of cashless payments;

Licensing of settlement systems of credit institutions.

Cash issued into circulation on the basis of an issue permit - a document issued by the Board of the Central Bank of the Russian Federation within the limits of the issue of money into circulation established by the Government of the Russian Federation.

The Central Bank of the Russian Federation and the Government of the Russian Federation develop and implement a unified state monetary policy aimed at protecting and ensuring the stability of the ruble.

3. FINANCE AND FINANCIAL SYSTEM

1. The essence and functions of finance

The term "finance"(from Lat. Financia - income, cash) was first used in the XIII-XV centuries in the commercial cities of Italy. In the future, the term "finance" received international distribution and began to be used as a concept associated with the system of monetary relations between the population and the state regarding the formation of funds of funds.

The emergence of finance is due to the emergence of the state and is associated with the fact that the state performed a number of socio-political and economic functions, such as protecting borders and public order, building public buildings, waging wars, etc. Consequently, certain resources were required to carry out these functions.

With the development of society the influence of the state on the economy is increasing, which is accompanied by the development of the system of public finance. At the same time, various kinds of financial intermediaries appear, which accumulate and redistribute free funds of entrepreneurship and savings of the population. The sphere of finance is expanding, the term "finance" goes beyond the scope of public finance and covers new areas (enterprise finance and public finance).

Finance - this is system of economic relations regarding education , distribution and use of cash income in the form of funds from the state, business entities and the population.

The essence of finance as an economic category in that finance always has a monetary form of expression. A prerequisite for the existence of finance is the real movement of funds, and the reason is the need for all entities in funds for their functioning. But finance differs from money, both in content and in the functions performed. Money is the universal equivalent by which the input of labor is measured. Finance is economic instrument distribution of the redistribution of national income, a means of monitoring the formation and use of funds of funds.

The main task of finance is to provide financial and credit resources for the real sector of the economy.

Financial resources is a set of funds at the disposal of business entities, the state or the population, i.e. money serving financial relations.

Financial resources accumulated by the state are called centralized and are formed at the expense of tax revenues and non-tax revenues, as well as payments from the population. The resources remaining at the disposal of enterprises are called decentralized and are formed from the cash income and savings of the enterprises themselves.

The essence of finance as an economic category is manifested in the functions they perform.

Distribution function is the main one. The subjects of distribution are legal entities and individuals, at whose disposal targeted monetary funds are formed. The objects of the distribution function are the value of the gross domestic product and part of the national wealth. Finance serves different stages of the distribution of GDP, participating in both its primary distribution and redistribution.

Financial method distribution covers different levels of economic management: federal, regional and local. It is characterized by a multistage structure that generates different types of distribution - intra-farm, intra-sectoral, inter-sectoral, inter-territorial, inter-state. Through finance, the state influences not only the redistribution of national income between the production and non-production spheres and within these spheres, but also on production, capital accumulation, and the sphere of consumption.

In general, the distribution function of finance allows:

· Create targeted funds of funds at the level of economic entities, the state, the population, local governments;

· To strengthen the state;

· Develop the productive forces of society;

· Create reserves at the level of an economic entity, the state, as well as make savings by citizens.

Control function finance is determined by their property to serve as a means of controlling the process of value distribution and redistribution of the social product. The content of the function is to ensure control of the movement and formation of material values ​​in society, as well as the course of distribution and use of funds. Financial control operates when money and capital flows through systems and forms of payment, credit, taxation, collateral, etc.

One of the tasks of financial control- verification of compliance with legislation on financial issues, the timeliness and completeness of the fulfillment of financial obligations to the budget system, the tax service, banks, as well as mutual obligations of economic entities for settlements and payments.

Regulatory function finance... This function is associated with the intervention of the state through finances (government spending, taxes, government credit) in the reproduction process.

All functions finance operate simultaneously. In their unity and interaction, finance can manifest itself as a category of value distribution.

2. The financial system and its links

Financial system - This is a set of various spheres of financial relations, characterized by the peculiarities of the formation and use of funds of funds and a different role in other reproduction.

Financial system is a single system, since it is based on a single source of resources - national income. The differentiation of the financial system into separate links is due to the peculiarities of the functioning of the economic subjects of society, differences in the methods of distribution and use of funds of funds.

The functioning of all links is subject to a common goals - mobilization of financial resources and their further distribution and redistribution.

Rice. 3.1. Links of the financial system of the Russian Federation

The financial system of the Russian Federation includes the following links financial relations:

· The state budget system;

· Off-budget special funds;

· Government credit;

· Insurance funds;

· Finance of enterprises of various forms of ownership.

Consequently, the financial Russia's system consists of three large areas: general government finance, business finance and insurance finance (Figure 3.1).

Nationwide finance - These are centralized funds of funds, which are created by the distribution and redistribution of the national income created in the field of material production. The main purpose of this area is to centralize funds for regulating the economy and solving social problems at the level of the national economy.

Business finance - These are decentralized funds of funds, which are formed from the cash income and savings of the enterprises themselves. This is where the overwhelming share of the financial resources of the state is formed. Some of these resources are redistributed to budget revenues of all levels and to extra-budgetary funds. The key place among them belongs to the finance of commercial enterprises.

Insurance allocated into a separate group due to the specifics of insurance relations, including the mechanism for the formation of funds of insurance organizations, their use by methods different from those used in other areas of financial relations.

Accumulation process and placement of financial resources carried out in the financial management system of the country and business entities is directly related to the functioning of financial markets and institutions.

If the task financial institutions is to ensure the most efficient movement of funds from owners to borrowers, then the task of financial markets is to organize trade in financial assets and liabilities between buyers and sellers of financial resources. The solution to this problem is complicated by a number of objective reasons, since it is necessary to take into account the presence of different interests of market participants, risks of fulfilling obligations, etc.

Households, enterprises, and the state act as buyers and sellers in financial markets.

4. STATE FINANCE

1. State budget and taxes

The state budget - the largest link of state finance, which is a form of education and spending of funds that ensure the functioning of state power. The objective nature of budgetary relations is due to the fact that a certain part of the national income must be concentrated in the hands of the state, which is necessary to solve the tasks entrusted to the state.

Economic essence the budget is expressed in the system of financial relations between the state, self-government bodies, economic entities and the population on the life support of the state as a whole.

Social essence the budget is determined, on the one hand, by the level of tax burden for certain groups of the population and economic entities, on the other hand, by the direction of use of budgetary funds.

From a legal point of view budget is a document that takes the form of a law, a legal act, on the basis of which funds of funds are formed and spent for the performance of national functions, functions of the subjects of the Russian Federation and local governments.

The state budget is a special form of redistributive relations associated with the isolation of a part of the national income in the hands of the state in order to use it to meet the needs of the entire society. With the help of the state budget, there is a redistribution of national income (sometimes national wealth) between sectors of the economy, spheres of public activity, and territories of the country. In addition, measures for state financial regulation of the economy are carried out through the state budget.

The state budget performs the following functions:

· Redistribution of national income;

· State regulation and stimulation of the economy;

· Financial support of social policy;

· Control over the education and use of the centralized fund of funds.

In the relationship between the budget and the economy and society, two main problems are traditionally solved.

The first is so that when a significant part of the added value and property of economic entities is withdrawn, they do not deprive them of opportunities for entrepreneurship, simple and expanded reproduction. Manufacturers must have all the necessary conditions for effective business activity.

Second problem is reduced to ensuring sufficient social protection of the disabled population.

Budget system - this is based on economic relations and legal norms, the totality of all types of the country's budgets.

According to the budget code of the Russian Federation, the budget system consists of three levels:

I federal budget and budgets of state extra-budgetary funds;

II budgets of the constituent entities of the Russian Federation and the budgets of territorial state off-budget funds;

III- local budgets.

Budget process are procedures for developing and executing budgets.

The budgeting process covers four stages of budgetary activity: preparation of draft budgets; consideration and approval of budgets; execution of budgets; drawing up a report on the execution of budgets and their approval. All stages of the budgetary process are interconnected and are a direct reflection of the economic life of society.

Participants in the budget process are: President of the Russian Federation; legislative (representative) and executive bodies; monetary authorities; bodies of state and municipal financial control, as well as the main administrators of budgetary funds.

Each participant the budgetary process has its own objectives and its own budgetary powers. Control over the execution of budgets is entrusted to the treasury bodies.

The budget is based on government revenues.

Government revenues - this is the system of monetary relations, which is associated with the formation of financial resources at the disposal of the state and state enterprises. Income serves as the financial base of the state.

Composition of government revenues largely due to the methods by which the state accumulates the funds it needs. In a market economy, the main methods of mobilization are taxes, loans and emissions.

Central place in the public revenue system taxes, acting as the main instrument for the redistribution of national income and ensuring the mobilization of a significant part of financial resources (from 80 to 90%).

Tax represent compulsory and non-repayable payments established by law and made by the payer in a certain amount and at a certain time. The essence and role of taxes is manifested in their functions: fiscal, regulatory and control.

Financial resources ratio budgets depend on financial policy at each historical stage of state development and are approved annually when the law on the budget is adopted. federal budget characterized by the functions and purpose of this budget, which solves problems in the country as a whole (army, science, culture, space achievements and production). The federal budget accounts for 50% to 70% of financial resources. Territorial budget forms the resources of the region and solves territorial problems of the budgetary sphere and municipal enterprises. It accounts for 20% to 50% of financial resources.

Local budgets form the resources of a specific place of residence of the population (city, village), finance housing and communal activities, preschool education, municipal enterprises. It accounts for 5% to 20% of financial resources.

All budgets they function autonomously: local budgets are not included in the budgets of the territories with their revenues and expenditures, and the latter are not included in the federal budget.

Second in financial value of the method of mobilizing government revenues are loans. This is due to the presence of a gap between tax revenues and budget expenditures. The issuance of loans forms the public debt. The financial basis for repayment of loans is taxes.

The third method mobilizing government revenues serves paper money and credit emission. This is the most unpopular method, as it leads to an increase in excess money supply and increased inflation.

Government spending- it monetary relations arising at the final stage of the distribution process in connection with the use of centralized and decentralized state revenues. The content and nature of government spending are directly related to the functions of the state, economic, social, managerial, military (defense).

Government spending carried out in different ways: by financing and by providing loans and credits. The main method is financing, that is, gratuitous and irrevocable provision of funds in various forms for the implementation of relevant activities.

Using public spending from any source must be subject to financial discipline, the principles of legality, efficiency and expediency.

The main areas of government spending include:

Social spending - one of the most important types of expenses, including expenses for health care, education, social security, social insurance. Approximately 3/4 of their total volume is financed from budgetary and extrabudgetary funds. In recent years, the role of local finance in covering the costs of expanding social infrastructure, maintaining educational and health care institutions has significantly increased. Expenditures tend to grow due to the development of scientific and technological progress. At the expense of state social expenditures, measures are financed to ensure the reproduction of the labor force, the qualifications of workers, unemployment benefits are paid, etc.

Foreign economic expenses associated with the fact that the state in one way or another helps the manufacturer to break into the market. These are direct subsidies to companies from the budget, exemption of exporters from taxes, granting loans to exporters or importers on preferential terms, export insurance, etc. This group also includes government expenditures on the implementation of various international treaties, cultural, scientific and other ties.

Economic costs are of great economic importance. They contribute to the restructuring of social production, building up scientific and technical potential, modernizing enterprises and technical re-equipment of all sectors of the national economy. Investments play an important role. They are spent on financing infrastructure sectors (transport, communications, roads, land reclamation), which require huge capital investments. Economic costs include

· Financing of new progressive industries, such as nuclear energy and the space industry;

· Financing of unprofitable industries (coal mining, agriculture);

· Financing of research projects, especially fundamental ones, requiring a large concentration of financial resources.

Defense spending (military expenditures) are among the most important government expenditures. They include the cost of maintaining personnel; weapons; material and technical equipment; construction of military facilities; military research and development; pension provision for military personnel and members of their families; training of personnel; creation of reserves and reserves in case of war, etc. These are direct military expenditures.

There are also indirect military costs., i.e. costs associated with the elimination of the consequences of the war. When forming the military budget, one should take into account its irrevocable and unproductive nature. Only spending on military research and development can indirectly bring economic benefits.

Management costs - includes expenses for the maintenance of legislative and executive bodies of state power, for the maintenance of the judiciary, law enforcement bodies and the prosecutor's office. Management expenses are dominated by expenses for salaries, travel expenses, payment for transport and utilities, etc.

Expenses for the current servicing of internal and external debt - arise when using public credit to cover the budget deficit.

2. State off-budget funds

Reforming the system public finance in the 90s of the XX century in Russia was associated with the emergence of a system of off-budget funds. Their creation was dictated by the need to urgently solve certain social and economic problems of vital importance to society.

Extrabudgetary funds- one of the methods of redistributing the national income of the state in favor of certain social groups of the population. They are created on the basis of the relevant acts of the federal authorities, which regulate their activities, sources of income generation, the procedure and directions of use.

Directions of spending entering extra-budgetary funds are determined by the purpose of the funds, specific economic conditions and the content of the developed and implemented programs.

With the help of state extra-budgetary funds, a number of tasks can be solved:

Provision of social assistance and services to the population;

Ensuring the restoration and preservation of a person's working capacity;

Influence on the production process;

Providing environmental protection measures.

Pension fund of the Russian Federation(FIU) formed as an independent financial and credit institution for the purpose of managing pension provision. The main purpose is to preserve family income. The PFR and its funds are in the state ownership of the Russian Federation, are not part of the budgets, other funds and are not subject to seizure.

Pension fund funds are formed according to the Regulations on the Pension Fund of the Russian Federation at the expense of employers' insurance premiums; insurance premiums of employees; allocations from the federal budget; part of the funds received as a result of capitalization (investment in securities) of temporarily free funds; voluntary contributions from legal entities and bank loans. Employers' insurance premiums in the PFR are charged to the cost of products (works, services).

Social Insurance Fund of the Russian Federation(FSS) was created with the aim of providing state guarantees in the social insurance system and increasing control over the correct and effective spending of social insurance funds and is an independent state financial and credit institution. The main purpose is to ensure family prosperity in the event of temporary disability, health restoration (vouchers) or social benefits. The FSS is managed by the Government of the Russian Federation with the participation of all-Russian associations of trade unions.

The funds of the fund are formed at the expense of employers' insurance premiums; insurance contributions of citizens engaged in self-employment and entitled to state social insurance coverage; income from investing part of the temporary free funds of the FSS in liquid securities and bank deposits within the funds provided by the budget for the relevant period; voluntary contributions from individuals and legal entities; allocations from the republican budget of the Russian Federation; other income.

Compulsory health insurance fund(MHIF) intended for the accumulation of funds for compulsory health insurance. Compulsory health insurance provides all citizens of the Russian Federation with equal opportunities to receive medical and pharmaceutical care at the expense of the MHIF. To implement the health insurance policy with