Types of money in our time. Essence, functions and types of money. Money as a store of value

Content

Each working person receives payment for the services provided in a certain equivalent. It can take different forms, but many citizens, when answering what types of money exist in our time, are able to give few examples, talking about electronic wallets, paper bills and gold coins. The listed payment elements constitute only part of the economic system and in reality there are much more of them.

What kind of money is there?

This specific product may be full or defective. Some citizens believe that it is more correct to divide money into cash and non-cash, but this is not so. Cash may not be valid. Many finances separately consider electronic means of payment, because... it is difficult to determine the costs of their production and correlate them with the nominal value.

Complete and inferior

When assigning a product to one of these categories, its nominal and real value plays a role. If both of these parameters coincide, then the money is considered full value. If the denomination exceeds the cost of production of the product, then it is considered inferior. Full-fledged money includes commodity and metal money, while paper and credit money are inferior.

Properties of money

The essence of a product is always revealed through its characteristics. In the case of money, the main property is its constantly recognized value. Funds have a personal exchange value. Money is considered the most liquid asset. They can always be exchanged for the currency of another state or for securities. They also make demands on the resources used to produce money:

• Safety. Funds must be protected from copying, counterfeiting and changes in denomination.
• Storability. The product must not change its physical and other properties during long-term storage.
• Recognition. The funds can be easily identified.
• Unity and divisibility. A product cannot significantly change its properties if it is combined into one large part or divided into many small ones.
• Uniformity in quality. Individual copies of coins and banknotes should not have any unique properties.

What functions does money perform in the economy?

This tool is used to determine the value of commodity resources that are part of the economic life of society. Thanks to absolute liquidity, currency plays the role of the foundation of the economic system of each state. Any type of money in our time represents a universal measure of the cost of products and services. The essence of this means of payment is revealed in its five functions:

1. Measure of value. Used to express the prices of all goods and services that are comparable qualitatively and identical quantitatively.
2. Instrument of payment. The function is performed when receiving goods on credit, paying utilities, taxes and paying salaries.
3. Means of circulation. They allow you to simplify the process of exchanging and receiving products.
4. A means of accumulation and savings. The most convenient form of storing wealth due to high liquidity.

In some sources, the properties of money include its access to the international market. Global money becomes global when it participates in the circulation of finances between several states. Money used to maintain international economic relations is called currency. It can be foreign and state. The dollar and euro are very popular in Russia among foreign currencies due to the high exchange rate. Foreign money includes:

• funds in accounts in monetary units of foreign countries and in international monetary units;
• banknotes in the form of coins and banknotes that are legal tender of any state and are currently in circulation.

Main types of money

Throughout history, humanity has used different types of means of payment. The simplest of them were products that the owners exchanged for other goods. The emergence of the concept of commodity money is associated with this moment in the development of the economic system. In everyday life of financiers such concepts as fiat, credit, secured, full-fledged and inferior money often appear. All of them are types of means of payment used to pay for services, purchase products and repay loans.

Commodity

The category of products refers to real products that have their own value and usefulness. They are considered full-fledged money. Such means include all types of products that played the role of equivalent in the initial stages of the development of trade (grain, fur), and metal coins. The use of the latter type of commodity currency continues to this day.

Fiat

Paper rubles, euros and dollars belong to this category of money. The great thing about fiat money is that its real value is much lower than its face value. They have no value, they are issued by the state, but they are considered legal tender of any country on its territory. Fiat money can be produced in the following forms:

• paper banknotes;
• non-cash (on bank accounts).

Credit

Issued in the form of banknotes, which cannot be exchanged for gold, and in the form of bank deposits. From a legal point of view, these documents allow the owner to claim the debt from the debtor even in cases where he was not the creditor. This form of payment can be used to pay off your own credit obligations or purchase any goods. Payment of the debt is carried out within the period specified on paper.

Secured

Their role is played by certificates or certain marks that can be exchanged for a fixed amount of products. In practice, secured money becomes representatives of commodity money. At the first stages of the development of trade relations, they were used as confirmation that the buyer had full-value coins. After the abolition of the gold standard, such banknotes are no longer in use.

Types of money in the modern world

The progress of society does not stand still. One era gives way to another, and new means of payment are periodically introduced into economic systems. If you ask a bank about what types of money exist in our time, the specialist will definitely tell you about metal, paper and credit means of payment. They differ not only in the form of production, but also in the concentration of value.

Metal

The appearance of these means of payment is associated with the special properties of the material from which they are made. Gold and silver, even when transported over long distances, do not change their properties. Based on these properties, states decided to start minting coins in institutions. The role of metallic money increased greatly after the start of demonetization of gold. This metal began to be gradually withdrawn from the international economic system.

Coins can be bimetallic or made entirely of one material. Modern metal currency is made from cupronickel, copper, steel and brass. Completely gold coins were taken out of circulation. The denomination is often depicted on the reverse, and the state emblem on the obverse. After gold is taken out of circulation, copper is added to coins to achieve a rich yellow hue.

Types of paper money

Symbolic means of payment are used in all countries of the world. Approximately 70% of Russian citizens, when asked what types of money exist in paper form in our time, will begin to list all denominations of rubles. This answer will not be correct. Paper money refers to all funds that have a value much lower than their face value. Their list includes:

• banknotes;
• checks;
• treasury notes;
• bills;
• bonds;
• other types of securities.

The last category includes legally certified papers confirming the owner’s property rights to certain resources. This could be a certain amount of money or some account number. Securities are available for circulation, documented, standardized, liquid and always recognized by the state. If necessary, the owner can sell them and receive a reward in foreign or domestic currency.

Treasury notes

The production of this form of money was carried out by the Federal Treasury. In terms of their characteristics, they completely coincide with bank notes. Treasury bills, along with rubles, were widely used in the USSR. They could be issued as salary. After the formation of the Russian Federation, during the first 3 years, citizens were provided with assistance in exchanging treasury notes for traditional state currency.

The first paper money introduced in countries instead of precious metal coins. In some sources, this term refers to a contract involving the transfer of money, jewelry or securities from one party to the transaction to another. Their production ceased worldwide by 1823. Banknotes in use were confiscated, giving in return paper currency or other goods that the owner of the document was supposed to receive under the contract.

Modern credit money

Commercial organizations not only act as intermediaries in transactions, but also provide financial assistance to the population. It is difficult not to mention credit means of payment when considering what types of money exist in our time. In short, they are debt obligations that must be realized within a specified time frame. These include:

• checks;
• bills;
• banknotes.

Bills of exchange

This security is issued in the form of a promissory note in writing. The essence of the document is simple. The debtor undertakes to pay the amount specified in it to the recipient of the bill, but strictly on a specific date and in a specified place. A bill of exchange can be one of 4 types - bank, treasury, simple or transferable. The main feature is servicing mostly wholesale trade. Repayment of the balance of mutual claims is carried out by paying out cash.

All credit funds are issued by the country's central banks. Initially, such money was doubly guaranteed - it had a commercial and gold guarantee. The main difference between a banknote and a bill of exchange is that it has a perpetual form, that is, it is valid for an unlimited period of time. Nuances:

1. The provision function lies with the country's central bank.
2. During the development of banknotes, they lost two types of security at once.
3. Today, banknotes come into circulation in several ways - by exchanging foreign money for banknotes of their own country, through commercial banks or state financial and credit institutions.
4. They are used in various fields of human activity, and do not belong to a special currency.

Checks

This document is an order from the owner of the bank account to transfer a certain amount to the bearer of the check. For full check circulation, an agreement is drawn up between the lender and the client, which stipulates the total amount of the loan provided. All checks differ in their characteristics and come in several types: personal, order and bearer. The latter type can be brought to the bank to get money.

Credit and payment plastic cards

Under the guidance of the central bank, financial institutions develop payment products. A credit card is intended for making transactions using borrowed funds. In its properties, a credit card is almost the same as a loan. The main difference is that the funds can be used as needed, and interest is charged only on the amount that is actually used.

Credit cards are reusable, that is, after repaying the borrowed amount, you can use the credit funds again. Moreover, for periods when credit funds are not used and there is no debt on the account, no fees are charged (except for payment for additional services, for example, mobile banking). Payment plastic cards are designed to make transactions using money already in the account.

Electronic cash and electronic means of payment

Experts answering the question about what types of money there are always mention finance used on the Internet. The list of electronic funds includes not only money from certain countries located in clients’ bank accounts, but also cryptocurrencies that are not related to any country. They are calculated in the same way as with standard banknotes. Electronic funds meet the following criteria:

• stored on electronic media (card or bank account);
• accepted for payments by other organizations other than the bank that issued them;
• are made in the same volume as the amount sent by a specific person to the bank.

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HOW DO YOU MAKE MONEY? Production of money in Russia. History of money.

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

Main types of money

Globally, there are two main types of money:

1. Real money, i.e. money, the nominal value of which corresponds to its real (intrinsic) value. An example of this type of money is money in the form of bars and coins made of gold (see). The vast majority of monetary systems of early eras functioned on the basis of real money (see).
2. Fiat money, i.e. money, the real value of which, as a rule, is significantly lower than its face value. For example, the cost of producing a 100 dollar bill is less than 10 cents. Fiat money is the basis of all modern monetary systems.

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

Commodity money

In different historical eras and among different peoples, various goods and objects acted as money (i.e., intermediary goods): livestock, grain, salt, tea, tobacco, jewelry, arrowheads and spears, and there were also completely “exotic” objects , for example, Cowrie shells, etc. At a higher level of development of our civilization, the above items were replaced by precious metals - mainly gold and silver.

Commodity money(they are also quite often called real money, natural money, real money or real money) - this is a type of money, the role of which is a certain product that has an internal 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 barter transactions) and as a product for personal consumption - direct consumption, salting meat, curing hides, etc.

As exchange developed, the role of money was assigned to one commodity—precious metals (gold and silver). This was due to their physical and chemical properties, such as:

• portability (light weight contains great value - unlike, for example, salt);
• transportability (ease of transportation - unlike 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);
• recognition (gold and silver are easy to distinguish from other metals);
• relative rarity (which provides noble metals with a fairly high value);
• wear resistance (noble metals do not corrode and do not lose their value over time - unlike furs, leather, shells).

Based on precious metals, different types of monetary systems existed in different countries:

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

At first, precious metals were used in the form of ingots. Servicing the exchange required constant weighing and dividing of ingots. Therefore, in the 7th century BC. In ancient Rome, in the temple of the goddess Coin, ingots began to be given a flat shape, the weight of the metal was set, and a portrait of the ruler was minted. This is how the first coins and monetary circulation based on coins appeared.

Although commodity money has long gone out of use, at the moment, under certain conditions, some goods continue to perform the functions of money. For example, in prisons, prisoners have such goods as cigarettes; in places of military operations, weapons and ammunition can be used as money; in times of 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. Typically this is:

• non-portable (not compact): took up a lot of space (large volume) - inconvenient for storage;
• heavy – inconvenient for 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 a product 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 and the level of economic development grow.

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

Rice. Types of money

Secured money

Secured money– evolutionarily the next type of money after commodity money. Secured money (also called change money, representative money) is money, the role of which is tokens or certificates that can be exchanged upon presentation for a fixed amount of a certain product or commodity money, for example, gold or silver. In fact, backed money is a 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 during the circulation process.

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.

Credit money arises with the development of commodity production, when purchases and sales are carried out in installments (on credit). Their appearance is associated with, where they act as an obligation that must be repaid on time.

A feature of credit money is that its release into circulation is linked to the actual needs of circulation. The loan is issued against security, which is served by certain types of inventory, and repayment of loans occurs when the balance of valuables decreases. Thanks to this, it is possible to link the volume of means of payment provided to borrowers with the actual need for money turnover.

Credit money does not have its own value; it is a symbolic expression of the value contained in an equivalent product. They are usually released into circulation by banks when performing credit operations. Credit money has gone through the following development path: bill of exchange, accepted bill of exchange, banknote, check, electronic money, credit cards.

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

Money has been known to mankind since ancient times., but the need for them in a subsistence economy was episodic in nature, since only the accidentally remaining surpluses were exchanged. The exchange of goods was carried out according to the formula: T-T. 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 assets 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 certain commodity with the value of a special commodity used as a universal equivalent - money.

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

As money in different historical eras and in different countries, different goods were used, and then noble metals, which later turned out to be most suitable for fulfilling this role. The involvement of noble metals in fulfilling the role of money is associated with such properties as divisibility, homogeneity, preservation.

The economic literature identifies the following stages in the evolution of money:

Stage 1 - the appearance of money with random goods performing its functions;

Stage 2 - assigning a universal equivalent to gold.

Stage 3 - transition to paper or credit money;

Stage 4 - gradual displacement of cash from circulation.

1st stage inherent subsistence farming, when products were produced for one's own consumption, and the surplus was used for exchange for the products of other producers, most often by accident. The development of the production of various goods required compliance with the equivalence of their value and contributed to the identification among the general diversity of a certain general equivalent in the form of goods that had a high liquidity and, accordingly, the ability to implement. Such goods included livestock, furs, precious stones and metals.

2nd stage - highlighting gold as a universal equivalent, which at that time had such qualities as rarity, uniformity, divisibility, shelf life, high cost and availability of sufficient quantity.

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

4th stage - continues to develop at the present time, aimed at gradually ousting cash from circulation. The movement of money in accounts occurs using checks, which are a type of bill of exchange containing an unconditional order from the drawer to a 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 is emerging - electronic money. This is an electronic system that operates through the transmission of electronic signals and allows for 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 an applied magnetic stripe or a built-in 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 general direct exchangeability - money can be exchanged for other goods;

In the form of independent exchange value, money can be exchanged for goods at a symbolically nominal value, which does not correspond to their real value;

In the form of materialization of socially necessary labor time, money measures labor costs embodied in goods.

2. Functions of money

The essence of money manifested 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.

Measure of value - in this function, money in circulation is called the weight quantity of money; it measures 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 labor time costs. Value expressed in money is a price that is expressed in a certain quantity of a monetary commodity - gold.

Amount of gold is measured by its weight, and a certain weight amount of gold is taken as a unit of measurement of its mass, this unit is established by the state as a monetary unit and is called the price scale. Thus, all prices of goods 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 prices must be reduced to the same scale. The scale of metal prices, accepted in a given country as a monetary unit and used to measure the price of all other goods.

Between money There are significant differences between money as a measure of value and money as a price scale. Money as a measure of value relates to all other goods, arises spontaneously, and changes depending on the amount of social labor spent on the production of a money commodity. Money as a price scale is set by the state and acts as a fixed weight amount of metal that changes with the value of this product.

Functionfacilities payment manifests itself in servicing payments outside the scope of trade turnover, when providing and repaying cash loans, when paying off wage arrears, paying taxes, social benefits, and interest on loans.

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

How store of value After the sale of goods and services, money is temporarily withdrawn from circulation and accumulated for future purchases. Savings for a short period are carried out in the form of opening deposit accounts in credit institutions. Long-term savings - in the form of investing 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 international division of labor and the creation of a global financial market. Gold acts as world money as the final means of payment in cases of the formation of a passive balance of the balance of payments, as well as the replenishment of currency reserves for current international payments. In addition to gold, a freely convertible currency, the international unit of account SDR, is used as world money.

World money has three purposes: universal means of payment; universal means of purchasing and the materialization of social wealth. Money acts as an international means of payment 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 public 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 money has real value, it is divided into:

· real money, having real value;

· signs of value that have no real value.

TO real money relate:

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

2) banknotes exchangeable for gold are bank notes that were issued by large commercial banks, subject to the availability of gold bullion. According to the 1st requirement, banknotes had to be exchanged for gold.

TO signs of value relate:

1) a small change coin 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 Russian government to cover budget expenses. Their release is not determined by the needs of trade turnover 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 devalued, especially as confidence in the Government declines. Paper money takes the form of treasury notes.

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. Loan money is secured because When issuing a loan, the Central Bank requires collateral. Credit money has the form of banknotes if they exist in cash. They can exist in 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 form.

Non-cash money- this is money that does not have a visible form and exists in the form of entries in bank accounts.

Non-cash money It is customary to classify according to the degree of their liquidity. Under liquidity refers to the ability of money to quickly make payments.

1) The most liquid is cash, but it is also the most unprofitable type of asset that does not generate income.

2) Deposits on demand - these are balances on current, current and other customer accounts that can be withdrawn upon request.

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

4) Deposits for a period of more than 1 year - funds not intended for use in current trade turnover; they will be used in future trade turnover.

4. Forms of issuing money. The impact of money emission on price inflation

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

Inflation first appeared due to 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 expenditures due to deficit financing, which contributed to the depreciation of money.

Modern inflation 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 a violation of the proportions between various spheres of the economy: accumulation and consumption, supply and demand, government income and expenditure, sources of loan capital and their use, the size and supply of money in circulation and the economy's needs for money.

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

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

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

Currency reform- This a complete or partial transformation of the monetary system carried out by the state in order to stabilize monetary circulation.

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

Nullification - declaration by the state of depreciated banknotes as 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 state to market economies. During “shock therapy,” such harsh measures as freezing wages, reducing production, increasing unemployment, etc. are used.

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

Deflationary policy- these are methods of limiting money demand through monetary and tax mechanisms by reducing government spending, increasing the interest rate on loans, and limiting the money supply. This 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 when they perform 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 represents a set of payments for a certain period of time and reflects their movement as a medium of exchange and means of payment.

The scope of use of cash is mainly related to the income and expenses of the population:

· settlements between the population and retail and public catering enterprises;

· remuneration by enterprises;

· depositing money by the population into deposits and receiving them from deposits;

· payment of pensions, benefits, scholarships, insurance compensations;

· payment for securities and payment of income on them;

· payments for utilities and housing services;

· payment of taxes to the budget by the population.

Non-cash turnover serves settlements carried out between:

· legal entities of different forms of ownership;

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

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

· banks and various financial institutions and the population.

That. money all the time move from one sphere to another: cash, when deposited into accounts at credit institutions, becomes non-cash, and when 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 receipts of cash at cash desks and their issuance based on time series and the “Report on Cash Turnovers of Bank of Russia Institutions” or on the basis of basic applications received from serviced enterprises. The forecast is compiled quarterly, distributed by month, and sent to a 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, quarterly with a distribution by month, prepares forecasts of cash turnover by income, expenditure and emission result for the credit institutions served based on an analysis of the turnover of cash passing through their cash desks, and a week before the start of the quarter sends to the territorial offices of the Bank of Russia, settlement the cash desks of which use them when drawing up applications to reinforce the working cash register.

Forecast emission calculations money are taken into account when developing measures to organize cash circulation in the country.

Table 2.1

Cash turnover forecast

Non-cash turnover constitutes a significant part of the country's monetary turnover, which contributes to the concentration of monetary resources in banks.

The importance of non-cash payments is that with their expansion, the amount of cash required for circulation is significantly reduced, and therefore, circulation costs in the form of costs for the production, transportation, storage and destruction of money are reduced.

Non-cash turnover 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, lending, insurance, as well as in the form of other non-commodity payments.

Modern non-cash turnover 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. Business cash registers are only allowed to hold small amounts of cash within the limit.

2. The bulk of non-cash payments should be made through a bank.

3. Request for payment must be made either before or after shipment.

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

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

Compliance with these principles allows you to maintain the legality of the monetary 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 payment documents in the Russian Federation when making non-cash payments are: payment orders, payment requests, checks, letters of credit, collection orders, plastic cards, etc.

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

Payment request - 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 requirements, 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 enterprise when they are granted the right to indisputably write off funds.

Payment order, payment request and collection order are traditionally combined in financial theory with one term “orders of approval”. All these documents are not negotiable, i.e. their assignment to a third party is not intended.

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 honor a bill of exchange or delegate authority to another bank to carry out such transactions, subject to the provision of the documents provided for in the letter of credit and subject to the fulfillment of all its conditions.

One of the most dynamic tools for non-cash payments is a plastic card.

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

Law of money circulation establishes the amount of money needed to perform the functions of a medium of circulation and a means of payment. The amount of money required to perform the functions of money as a means 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) velocity of money circulation (inverse relationship).

This relationship was first established by K. Marx.

Amount of money to perform the function of a medium of exchange is defined as the ratio of the sum of commodity prices to the average number of turnovers of the same monetary units (money circulation velocity):

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

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

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

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

An increased money supply with the same volume of goods on the market leads to the depreciation of money, i.e., ultimately, it is one of the factors in the inflationary process.

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

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

b) the level of commodity prices and tariffs for services (the relationship is direct: 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 (inverse relationship).

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 on the following form:

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

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

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

S 3 - amount of payments on obligations;

P - mutually extinguishing payments.

When handling metal 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 excess money went into treasures; if it increased, there was a reverse influx of money.

Based on this observation, K. Marx formulated the law of paper money circulation: paper money should be put into circulation in the same quantity as the gold it replaces would circulate. The issue of paper money in large quantities leads to a disorder in 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 the most important quantitative indicator of money circulation and represents the total volume of purchasing and payment instruments serving economic turnover. The amount of fiat credit money should be determined by the value of all valuables in the country through money capital.

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

Table 2.2

Structure of monetary aggregates in the Russian Federation

Analysis of the structure and dynamics of the money supply is of great importance when the Central Bank of the Russian Federation develops monetary policy guidelines.

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

Change the volume of money supply can be the result of both a change in the mass of money in circulation and an acceleration of its turnover.

Velocity of money - this is an indicator of the intensification of their movement when functioning as a means 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 a 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 connection between money circulation and economic development processes;

· money turnover in payment circulation 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 non-cash payments.

Other indicators of the speed of money turnover are also used. In Russian practice, depending on the completeness of coverage of cash turnover, they distinguish:

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

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

On the speed of money circulation influenced by general economic factors, such as the cyclical development of production, its growth rate, price movements, as well as monetary factors. 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 payments. It also depends on the frequency of payment of income, the extent to which the population spends its funds, and the level of savings and accumulation.

3. The country's monetary system

Monetary system - the historically established structure of monetary circulation in the country, enshrined in national legislation. There are two types of monetary systems:

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

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

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

Bimetallism - a monetary system in which the role of universal equivalent is assigned to two metals (silver and gold). Free coinage and unlimited circulation are provided for. There were two price scales for goods on the market. 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.

Monometalism - a monetary system in which one metal (silver or gold) serves as a universal equivalent. Under this system, there are coins made of one precious metal and tokens of value exchanged for coins.

In most developed countries, already 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 coinage, unhindered exchange of banknotes for gold, and not prohibited movement of gold between countries. However, this standard required the presence of sufficient gold reserves in the issuing centers. The First World War, which required large military expenditures, caused an increase in the budget deficit of the warring states and led to the abolition of the gold coin standard in most countries.

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

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

Currency unit- This a monetary sign established by law that serves to measure and express the prices of all goods and services. It is usually divided into small proportional parts. Most countries use a decimal system (1 US dollar equals 100 cents).

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

Emission - release of funds and securities into circulation. The issue 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 change coins.

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

· budget- is the issue of paper money carried out by the Treasury at the request of the government of the country to cover budget expenses. The issue of money is not determined by the needs of trade turnover 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 devalued, especially as confidence in the Government declines. Paper money takes the form of treasury notes.

· credit- is the issue of money carried out 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. Loan money is secured because When issuing a loan, the Central Bank requires collateral. Credit money has the form of banknotes if they exist in cash. They can exist in non-cash form.

Types of money, which are legal tender, are credit money and, first of all, banknotes, small change, as well as paper money (treasury bills). Thus, in the United States, bank notes in circulation are 100, 50, 20, 10, 2 and 1 dollar; Treasury notes issued by the U.S. Treasury in $100 units, as well as silver-copper and cupro-nickel coins in the $1, 50, 25, 10, and 1 cent coins.

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

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

The central bank issues banknotes in three ways:

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

· lending to the treasury secured by government securities;

· issuing banknotes by exchanging them for foreign currency.

In many industrialized countries under the influence of increasing inflation and the growing crisis in the economy, targeting has become widespread - the establishment of targets in order to regulate the increase in the money supply in circulation and credit, which should guide 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 USA, all four monetary aggregates (Ml, M2, M3, M4) are targeted, but in France only M2. However, this form of regulation has shown poor effectiveness and a number of countries have 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 is not established by law. The official exchange rate of the ruble to foreign monetary units is established as a result of trading on the Moscow Interbank Currency Exchange (MICEX) and is published in the press.

Exclusive right The Central Bank of the Russian Federation is responsible for issuing cash, organizing its circulation and withdrawal on the territory 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 Banknotes and metal coins that 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 descriptions are published in the media. They are mandatory for use at their face value throughout the country and for all types of payments, as well as for crediting to accounts and deposits for transfer. The period for withdrawal of old banknotes should not be one year, but not more than five years. When exchanging, any restrictions on the amounts and subjects of exchange are not allowed. Banknotes and coins may be declared invalid (no longer valid as legal tender) by law. Counterfeiting and illegal production of money are punishable by law.

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

Forecasting and organizing the 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 non-cash payments;

Licensing of settlement systems of credit institutions.

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

The Central Bank of the Russian Federation and the Government of the Russian Federation are developing and implementing 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 Latin Financia - income, cash) first began to be used in the 13th - 15th centuries in the trading cities of Italy. Subsequently, the term “finance” gained 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 due to the fact that the state performed a number of socio-political and economic functions, such as protecting borders and public order, constructing public buildings, waging wars, etc. Consequently, certain resources were needed to perform 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 public finance system. At the same time, various kinds of financial intermediaries appear that accumulate and redistribute free funds from businesses and savings of the population. The scope of finance is expanding, the term “finance” goes beyond public finance and covers new areas (enterprise finance and household finance).

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

The essence of finance as an economic category is 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 of all entities for funds for their functioning. But finance differs from money, both in content and in the functions it performs. Money is the universal equivalent by which labor costs are measured. Finance is economic instrument distribution of redistribution of national income, a means of controlling the formation and use of funds.

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

Financial resources - this is the totality of funds at the disposal of business entities, the state or the population, i.e. money servicing financial relations.

Financial resources accumulated by the state are called centralized and are formed from 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 it performs.

Distribution function is the main one. The subjects of distribution are legal entities and individuals at whose disposal funds for special purposes 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 GDP distribution, 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 multi-stage nature, giving rise to different types of distribution - intra-farm, intra-industry, inter-industry, inter-territorial, interstate. Through finance, the state influences not only the redistribution of national income between production and non-production spheres and within these spheres, but also production, capital accumulation, and the sphere of consumption.

In general, the distribution function of finance allows:

· create trust funds of funds at the level of business entities, the state, the population, and local governments;

· strengthen the state;

· develop the productive forces of society;

· create reserves at the level of an economic entity, the state, as well as carry out savings by citizens.

Control function finance is determined by their property of serving as a means of controlling the process of cost distribution and redistribution of the social product. The content of the function is to ensure control over the movement and formation of material assets in society, as well as the distribution and use of funds. Financial control operates during the movement of money and capital through systems and forms of payment, credit, taxation, collateral, etc.

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

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

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

2. Financial system and its links

Financial system - this is a set of different 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 unified system because it is based on a single source of resources - national income. The division of the financial system into separate links is due to the peculiarities of the functioning of economic entities of society, differences in the methods of distribution and use of funds.

The functioning of all links is subordinated 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:

· state budget system;

· off-budget special funds;

· state loan;

· insurance funds;

· finance of enterprises of various forms of ownership.

Therefore, financial The Russian system consists of three large areas: national finance, finance of business entities and insurance finance (Fig. 3.1).

National finance - these are centralized funds of funds that are created through the distribution and redistribution of national income created in the sphere of material production. The main purpose of this area is the centralization of funds to regulate the economy and solve social problems at the level of the national economy.

Finance of business entities - these are decentralized funds of funds that are formed from the cash income and savings of the enterprises themselves. The predominant share of the state’s financial resources is formed here. Part of these resources is redistributed to budget revenues at all levels and to extra-budgetary funds. A key place among them belongs to the finance of commercial enterprises.

Insurance highlighted 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, the task of financial markets is to organize trade in financial assets and liabilities between buyers and sellers of financial resources. Solving this problem is complicated by a number of objective reasons, since it is necessary to take into account the different interests of market participants, risks of fulfilling obligations, etc.

Buyers and sellers in financial markets are households, enterprises, and the state.

4. PUBLIC FINANCE

1. State budget and taxes

The state budget - the largest link in state finance, which is a form of formation and expenditure 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 necessary to solve the tasks assigned to the state should be concentrated in the hands of 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 issues of life support for the activities of the state as a whole.

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

From a legal point of view budget- this 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 to perform national functions, the functions of constituent entities of the Russian Federation and local governments.

The state budget is a special form of redistribution relations associated with the separation of 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, national income (sometimes national wealth) is redistributed between sectors of the economy, spheres of public activity, and territories of the country. In addition, through the state budget, measures are taken for state financial regulation of the economy.

The state budget performs the following functions:

· Redistribution of national income;

· State regulation and stimulation of the economy;

· Financial support for social policy;

· Control over the formation and use of a 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, it does not deprive them of opportunities for entrepreneurship, simple and expanded reproduction. Manufacturers must have all the necessary conditions for effective business activities.

Second problem comes down to ensuring sufficient social protection of the disabled population.

Budget system - This a set of all types of country budgets based on economic relations and legal norms.

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 budgets of territorial state extra-budgetary funds;

III - local budgets.

Budget process - these are the procedures for developing and executing budgets.

The budget process covers four stages of budgetary activity: drafting budgets; review and approval of budgets; execution of budgets; drawing up a report on the execution of budgets and their approval. All stages of the budget 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; bodies of legislative (representative) and executive power; monetary authorities; bodies of state and municipal financial control, as well as the main managers of budget funds.

Each participant The budget process has its own tasks and its own budgetary powers. Control over the execution of budgets is entrusted to the treasury authorities.

Budget formation is based on government revenues.

State revenues - This a system of monetary relations that is associated with the formation of financial resources at the disposal of the state and state-owned enterprises. Revenues serve as the financial base of the state.

Composition of government revenues largely determined by 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 location occupy in the state 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%).

Taxes represent mandatory and gratuitous payments established by law and made by the payer in a certain amount and within a certain period. The essence and role of taxes are manifested in their functions: fiscal, regulatory and control.

Ratio of financial resources budgets depend on financial policy at each historical stage of the state’s development and are approved annually when the budget law is adopted. A large share 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 sector and municipal enterprises. It accounts for 20% to 50% of financial resources.

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

All budgets operate autonomously: local budgets with their income and expenses are not included in the territorial budgets, and the latter are not included in the federal budget.

Second in financial terms important 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 public debt. Taxes serve as the financial basis for loan repayment.

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

Government spending- This 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 state’s economic, social, managerial, and military (defense) functions.

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

Using public expenditures from any sources must comply with financial discipline, the principles of legality, efficiency and expediency.

The main areas of government spending include:

Social expenses - 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 extra-budgetary funds. In recent years, the role of local finances in covering the costs of expanding social infrastructure and maintaining educational and health care institutions has increased significantly. Expenses tend to increase due to the development of scientific and technological progress. State social spending finances activities that ensure the reproduction of the labor force, the qualifications of workers, pays unemployment benefits, etc.

Foreign economic expenses are related to 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, tax exemptions for exporters, provision of credit to an exporter or importer on preferential terms, export insurance, etc. This group also includes government costs for the implementation of various international treaties, cultural, scientific and other ties.

Economic costs are of great national economic importance. They contribute to the structural 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 expenses include

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

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

· financing of research work, especially fundamental ones, which require a large concentration of financial resources.

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

There are also indirect military costs, i.e. expenses associated with eliminating the consequences of the war. When forming a 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 agencies and the prosecutor's office. Management costs are dominated by salaries, travel expenses, transportation and utilities, etc.

Costs of current servicing of internal and external debt - arise when a government loan is used to cover a budget deficit.

2. State extra-budgetary funds

Reforming the system public finance in the 90s of the 20th century in Russia was associated with the emergence of a system of extra-budgetary funds. Their creation was dictated by the need to urgently solve certain social and economic problems that are vital for society.

Off-budget funds- one of the methods of redistributing the state’s national income in favor of certain social groups of the population. They are created on the basis of relevant acts of federal authorities, which regulate their activities, sources of income, procedures and areas of use.

Directions for spending funds, received by 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 problems can be solved:

Providing social assistance and services to the population;

Ensuring the restoration and preservation of a person’s ability to work;

Impact on the production process;

Providing environmental protection measures.

Pension Fund of the Russian Federation(PFR) formed as an independent financial and credit institution for the purpose of managing pension provision. The main purpose is to preserve family income. The Pension Fund and its funds are state property of the Russian Federation, are not included in budgets or other funds and are not subject to withdrawal.

Pension Fund funds are generated according to the Regulations on the Pension Fund of the Russian Federation at the expense of insurance contributions from employers; insurance premiums for workers; allocations from the federal budget; part of the funds received as a result of capitalization (investment in securities) of temporarily available funds; voluntary contributions from legal entities and bank loans. Employers' insurance contributions to the Pension Fund are included in the cost of production (work, 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 efficient spending of social insurance funds and is an independent state financial and credit institution. The main purpose is to ensure family prosperity in case of temporary disability, restoration of health (vouchers) or social benefits. The FSS is managed by the Government of the Russian Federation with the participation of all-Russian trade union associations.

The funds of the fund are generated from employers' insurance contributions; insurance contributions of citizens engaged in self-employment and entitled to receive state social insurance; income from investing part of the temporary free funds of the Social Insurance Fund in liquid securities and bank deposits within the limits of funds provided by the budget for the corresponding period; voluntary contributions from individuals and legal entities; allocations from the republican budget of the Russian Federation; other income.

Compulsory Health Insurance Fund(MHIF) designed to accumulate 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 Compulsory Medical Insurance Fund. To implement the health insurance policy with

First, let's define what money is: its essence lies in the fact that it is a universal equivalent to the cost of other services and goods.

In those days, when there was a surplus of goods, a universal means of payment was required. At first, people produced what they needed for their needs, some exchanged food for clothing and vice versa. Over time, the exchange process became popular, and then the need arose to create a product that could serve as a means of payment for anyone else. This is how money appeared.

Let's take a closer look at each of the points.

Measure of value

Appears at the moment the price arises, determining the cost of a service or product. The monetary value changes (price), depending on the following indicators:

Exchange terms;

Production conditions.

Medium of exchange - money

The essence of a means of payment is to make an exchange beneficial for both parties (seller-buyer). And money is the intermediary in the transaction. In addition to being a medium of exchange, it is also a functional means of payment (credits, mortgages, loans). The latter marked the beginning of the emergence of plastic cards.

Instrument of payment

If to pay for a product or service, then it is possible to take what you need on credit or from or product-credit-money.

World money

The essence of money is that it is used for international payments. Today the main international unit of payment is the dollar.

Types of money

They are divided into two groups: cash and non-cash. They are further divided into six subgroups.

Cash:

Small coin;

Paper money;

Credit (card) money.

Non-cash:

Credit cards (plastic);

Payment cards (plastic);

Electronic finance.

Let's look at some of the subgroups in detail

Paper money includes treasury notes, which are issued by the state and have no value as real ones. But they are used in all calculations and payments. Banknotes are also classified as paper money.

Credit money is checks, bills, banknotes.

Electronic financial instruments are money, the essence of which is that they can be used to pay for purchases/bills on the Internet, that is, they are in the electronic payment system (WebMoney, Yandex Money, etc.) and in bank accounts in electronic form .

Functions of money

1. Money is a universal opportunity to estimate the value of a product (a measure of value).

2. Money is a universal means of purchase (medium of exchange).

3. Distribution function. Implies a transfer from owner to recipient.

4. Savings and accumulative.

5. Currency exchange.

Conclusion

This article reveals what an entity and functions are. Payment means are necessary to serve the national economy. Their main function is payment for goods and services. The type of money depends on the material used.

Types of money

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

Real money.

Real money is money whose 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 in pieces, then in weights. The coin of the later development of monetary circulation had distinctive features established by law (appearance, weight content). The most convenient for circulation turned out to be the round shape of the coin (less wearable), the front side of which was called obverse, reverse - reverse and sawn-off shotgun - edge In order to prevent the coin from being damaged, the edge was cut.

Real money is characterized by stability, which was ensured by the free exchange of tokens of value for gold coins, the free minting of gold coins with a certain and constant 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 signs of value 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 low-value turnover;

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

the gold standard generally did not stimulate production and trade.

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

Substitutes for real money (signs of value).

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

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

paper tokens of value, usually made of paper. There are paper money and credit money.

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

The right to issue paper money is appropriated by the state. The difference between the nominal value of the issued money and the cost of its issue (paper, printing costs) forms treasury share premium, which is an essential element of government revenues. 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 emergence and then growth of the budget deficit caused the expansion of the issue of paper money, the size of which depended on the state’s need for financial resources.

Paper money performs only two functions: a medium of circulation and a means of payment. The absence of gold exchange does not allow them to leave circulation. The state, constantly experiencing a shortage of funds, increases the issue of paper money without taking into account commodity and payment turnover. The economic nature of paper money excludes the possibility of stability of paper money circulation, since its release is not regulated by the needs of trade turnover, and there is no mechanism for automatically withdrawing excess paper money from circulation. As a result, paper money, stuck in circulation regardless of trade turnover, overwhelms circulation channels and depreciates. Reasons for depreciation: excess issue of paper money by the government, decline in confidence in the issuer and unfavorable ratio of the country's exports and imports.

So, the essence of paper money is that they act as tokens of value, issued by the state to cover the budget deficit; they are usually not redeemable for gold and are endowed with a forced exchange rate by the state.

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

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

Credit money has gone through the following development path: bill of exchange, accepted bill of exchange, banknote, check, electronic money, credit cards.

Bill - a written unconditional obligation of a debtor to pay a certain amount at a predetermined time and place. Distinguish promissory note, issued by the debtor, and transferable (draft), issued by the creditor and sent to the debtor for signature with return to the creditor. A bill of exchange (draft) can be circulated thanks to an endorsement (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 are and treasury bills, issued by the state to cover the budget deficit and cash gap, friendly bills, written out by one person to another for the purpose of accounting them in the bank, bronze bills, not having product coverage.

The bill is characterized by the following features:

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

indisputability, meaning obligatory payment of the bill;

negotiability, 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 obligations. The payment guarantee increases even more upon acceptance (consent) of the bill by the bank (accepted bill).

The bill has certain circulation limits:

operates between persons who are well informed about each other’s solvency and who carry out trade and economic relations;

Serves primarily wholesale trade and is repaid between participants in bill circulation in cash.

In Russia, commercial, bank, treasury bills and other types of bills operate in different areas.

Commercial bill issued against the security of goods. Bank bill(first offered to its clients by Inkombank in early 1992) is issued by the issuing bank if the client has a certain amount on deposit. Unlike a commercial bill, a bank bill in its Russian version has a deposit form. This is essentially a promissory note, as it is issued by a bank client to its supplier in payment for goods, but can be endorsed to a third party. A bank bill provides a company with a new means of payment guaranteed by the bank. In addition to receiving income from the deposit, on the basis of which the bank issues a bill of exchange, the enterprise gets the opportunity to settle accounts with its partners, this is especially true if there are delays in the passage of payment documents through the Cash Settlement 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 (issue) bank of the country. Banknotes were first issued at the end of the 17th century. based on the rediscounting of private commercial bills. Initially, the banknote had double security: a commercial guarantee, since it was issued on the basis of commercial bills associated with trade turnover, and a gold guarantee, which ensured its exchange for gold. Such banknotes were called classic and had high stability and reliability. The central bank had a gold reserve for exchange, which excluded the depreciation of the banknote.

Unlike a bill of exchange, a banknote is a perpetual debt obligation and is backed by a public guarantee from the central bank, which in most countries has become government-owned.

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

Currently, central banks of countries issue banknotes of strictly defined denominations. Essentially, they are national money throughout the state. There is no material support in the form of goods or gold. Special paper is used to make banknotes, and measures are taken to make them difficult to counterfeit.