Finance, Credit, Investments – Economic Classes
Scientific works in the theories of finances and credit, in accordance with the specification of the research hier umgeleitet thing, are characterized to be many sided and many-leveled.
The definition of totality of the economic relations formed in the process of formation, distribution and use of finances, as money sources is widely spread. By way of example, in “the general theory of finances” there are two definitions of finances:
This latest first seems to be a part of value of principal industrial funds, later it’s transferred to the fee price of a ready merchandise (that is to the worth also) and after its realization, and it is set the depression fund. Its resource is taken into account before hand as a depression sort in the consistency of the prepared products cost price.
First, financing overcome the limits of distribution and re-distribution support of the national earnings, though it is a fundamental foundation of finances. Also, formation and use of the depreciation fund that is the section of financial domain name, goes not to the distribution and re-distribution of the national earnings (of recently formed value within a year), but to the distribution of already created worth.
1) “… Finances reflect economic relationships, formation of the funds of cash sources, in the method of distribution and re-distribution of nationwide receipts based on the distribution and use”. This definition is provided relatively to the conditions of Capitalism, when cash-commodity relationships gain universal character;
2) “Finances represent the formation of centralized ad decentralized money sources, economical relations relatively with the distribution and usage, which serve for fulfillment of the state functions and obligations and also provision of the conditions of the widened further production”. This definition is brought without showing the environment of its action. We share partly such explanation of finances and believe expedient to create some specification.
Second, main goal of finances is much broader afterward “fulfillment of the state functions and obligations and provision of conditions for the widened further production”. Funds exist on the state level as well as on the manufactures and besuchen Sie die Website branches’ amount also, and in such conditions, when the most component of the manufactures aren’t state.
V. M. Rodionova makes an emphasis of finances, as doling out Top-Artikel relations, when D. S. Moliakov underlines industrial basis of funds. Though the two of them give fairly substantiate discussion of finances, as a system of creation, distribution and usage of the funds of money sources, that comes out of the following definition of the finances: “financial cash relations, which forms in the process of distribution and redistribution of the partial value of the national wealth and total social product, is related with the subjects of the economy and formation and usage of the state cash incomes and savings in the widened further production, in the material stimulation of the workers for satisfaction of the society social and other requests”.
In every discussed position there are:
1) expression of essence and phenomenon in the meaning of finances;
2) Distribution of finances as societal product as well as the worthiness of national income, definition of the distributions planned character, chief goals of the economy and economical connections, for servicing of which it is used.
3) the definition of finances, as the method of the development and use of resources of cash sources on the degree of occurrence.
If refuse the preposition “socialistic” in the definition of finances, we may say, that it still keeps actuality. We meet with such conventional definitions of finances, without an adjective “socialistic”, in the modern economic literature. We can provide such an elucidation: “finances represent cash resources of production and usage, also cash relations appeared in the process of distributing values of formed economical product and national wealth for formation and further production of the cash incomes and savings of the economical subjects and state, rewarding of the workers and satisfaction of the social requests”. This latest is quite genuine, comparatively to the procedure for privatization and the transition to solitude and is periodically used in practice in various nations, for example, United Kingdom and France.
“Finances – are cash sources, financial resources, their creation and movement, distribution and redistribution, usage, also economical relations, which are conditioned by intercalculations between the economical subjects, movement of cash sources, money circulation and usage”.
In the guides of the political economy the financial meet together with the following definitions of funds:
As organizations’ve found, definitions of funds made by financiers and political economists tend not to differ greatly.
“Finances of the socialistic state represent economical (cash) relations, with the help of which, in the way of planned distribution of the incomes and savings the funds of money sources of the state and socialistic manufactures are formed for guaranteeing the growth of the production, rising the material and cultural level of the people and for satisfying other general society requests”.
“The system of development and usage of essential funds of money resources for ensure socialistic widened further generation signify exactly the finances of the socialistic culture. Along with the totality of economical relations arisen between state, manufactures and organizations, branches, areas and different citizen according to the movement of money funds make monetary relations”.
We fulfill with absolutely innovational definitions of funds in Z. physique and R. Merton’s foundation guides. “Finance – it’s the science about how the people lead spending ‘the deficit cash resources and incomes in the certain amount of time. The fiscal choices are defined by the expenses and incomes which are 1) separated in time, and 2) as a rule, it isn’t possible to consider them in to account beforehand neither by individuals who get choices nor every other individual” .
These basic conceptions and quantitative designs are used at each level of getting monetary decisions, but in the newest definition of finances, we meet with the next doctrine of the monetary foundation: main function of the finances is in the satisfaction of the individuals requests; the areas of economical actions of any type (companies, additionally state organs of each amount) are directed towards executing this basic function.
For the targets of our monograph, it is necessary to examine well known definitions about finances, credit and investment, to decide how and how much it’s conceivable to integrate the finances, investments and credit into the one absolute component.
Some research worker thing that credit is the consisting portion of finances, if it is discussed in the position of essence and type. The other, more numerous group shows, that an economical category of credit exists parallel to the economical class of finances, by which it underlines impossibility of the credit’s being in the consistency of funds.
N. D. Barkovski answers that function of cash created an economical basis for apportioning finances and credit as an independent class and gave rise to the credit and monetary relations. He detected the Gnoseological roots of science in money and credit, as the science about finances has business together with the the investigation of such economic relations, which lean upon cashflow and credit.
Let’s discuss the most spread definitions of credit. in today’s publications credit appeared to be “luckier”, then finances. For example, we meet together with the next definition of credit in the finance-economical dictionary: “credit is the loan in the form of cash and commodity together with the conditions of returning, usually, by paying percent. Credit represents a sort of motion of the loan money and expresses economical connections involving the lender and borrower”.
It is the conventional definition of credit.
Credit is mentioned in the following way in the earlier education-methodological guides of political economy: “credit is the method of money connections, which will be done in the method of using and mobilization of temporarily free cash signifies of the state budget, unions, manufactures, organizations and citizenry. Credit comes with an objective character. It is employed for providing widened additional creation of the state along with other needs. Credit differs from finances by the returning character, while funding of fabricates and businesses by the state is fulfilled without this condition”.
Organizations by the state meet using the following definition if “the course of economy”: “credit is an economical type, which signifies relations, while the different industrial organizations or persons transmit cash means to each-other for temporal usage underneath the conditions of returning. Development of credit is conditioned with a historical procedure for satisfying the economical and money relations, the sort of which is the cash relationship”.
Following scientists give slightly different definitions of credit:
Uniting every definition named above, we come to an idea, that credit is giving money capital of goods as a debt, for particular terms and material provision under the price of firm percentage rate. It expresses definite economic relations involving the participants of the entire process of capital formation. Necessity of the credit relations is conditioned, from 1 side, by gathering solid amount of temporarily free money sources, and from the second side, existence of requests of them.
Credit is providing the temporally free money sources or product as a debt for the defined periods by the cost of fixed percent. Thus, a credit is the mortgage by means of of cash or commodity. In the process of the loan’s movement, a clear relations are formed between a lender (the loan is provided by a juridical of bodily person, who gives specific cash as a debt) as well as the debtor.
“Credit – is a loan in the form of money or commodity, which is given to the borrower by a creditor under the conditions of returning and paying the percentage rate by the borrower”.