Finance money circulation and credit Cossack. Finance, money circulation and credit (6) - Abstract

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Yuryev-Polsky College of Finance and Economics - a branch of the federal state

educational budgetary institution of higher professional education

"Financial University under the Government of the Russian Federation"

LECTURE NOTES

by discipline

“Finance, money circulation and credit”

Section 1. Money

1.2 Money circulation and characteristics of total money turnover

Section 2. Finance

2.2 State budget and treasury functions

2.3 Taxes and their functions

2.4 Extra-budgetary funds

2.5 Insurance

Section 3. Credit and banks

3.1 Essence, functions and forms of credit

3.2 Banking system of the Russian Federation

3.4 Bank profit and liquidity

3.5 Central Bank of Russia

3.6 Monetary policy. Monetary Policy Instruments

Section 4. Evolution of monetary circulation and the banking system of Russia

4.1 Development of banking in Russia since 1917

Section 5. Securities and stock market

5.1 Securities market, its meaning, basic concepts. Securities

5.2 Securities market participants

5.3 Stock exchange, organization of barge activities

Section 6. Specialized financial institutions

6.1 Insurance companies, investment funds, savings institutions, companies and banks

6.2 Financial companies, financial and industrial groups, credit partnerships, credit unions

Section 1. Money

History of money

Money as a social relation, i.e. a connection in society, historically appears before finance. The emergence of money was caused by the social division of labor and the development of exchange. The emergence of such social relations as finance is associated with the formation of the state. In the early stages of the development of exchange, money - the universal equivalent - became the product most in demand in a given area. In countries where there were deposits of gold and silver, these metals began to be used in ancient times as money. Thus, clay tablets found in the ruins of the city of Ur (Mesopotamia) contain information that almost 3.5 thousand years BC. e. silver served as money. In the 19th century The lag of the extraction of precious metals from the needs of the growing trade turnover in means of payment led to the spread of paper money issued by governments, as well as credit money issued by banks. After the First World War (1914-1918), the entire monetary turnover was made up of paper-credit money supply. Thus, the development of money has gone from commodity money to so-called fiat money with purchasing power established by the state. Traditional money was defined as a commodity, spontaneously isolated from the world of goods to serve as a universal equivalent. However, it is very difficult to define modern maternity money. They tried to express their essence in different formulations. For example, “Money is what it does.” Or: “Money is the reservoir of purchasing power.” It is unlikely that such definitions can be considered successful. In order to correctly say what money is, it is necessary to pay attention to the following circumstance. Money, as is known, has four functions: a measure of value; medium of exchange; means of storage; means of payment. But it is very difficult to give a formulation that unites all these functions. After all, money is banknotes, numbers in a savings book, and electronic credit card codes. In the doctrine of money at the beginning of the 19th century. Two main directions have emerged. The first, predominant one, argued that only gold can be full-fledged money, and paper money is a substitute for gold. The suspension of the exchange of paper money for precious metal, according to representatives of this trend, could only be temporary. Such views were shared by A. Smith, D. Ricardo, J. Mill, K. Marx. This direction had many supporters in the twentieth century. For its representatives, the collapse of gold circulation in England, France and Germany after the First World War and the final abolition of the gold content of the dollar in 1971 were a complete surprise. However, there was another theoretical school that argued that paper money could be in circulation without a gold base. In 1923, in his work “Treatise on Monetary Reform,” J. Keynes wrote that “the gold standard is only a barbaric relic of the past.” Under the Minister of Finance S. Yu. Witte, the Russian government headed for the introduction of a gold currency. This was motivated by the fact that in conditions of paper money it is impossible to ensure the stability of the ruble exchange rate to foreign currencies.

So, the development of exchange leads to the emergence of an equivalent product. In a later historical period, the process of formation of state principles takes place.

To provide material support for government, rulers begin to levy taxes from their subjects. The income generated from them is spent on certain purposes: the construction of defensive structures, the maintenance of troops, judges, etc. From the money collected in the form of taxes, funds begin to be formed for subsequent expenditure. They make up public finances. Thus, in the definition of finance, the key word becomes the word “funds”.

Individuals and their associations also form their own funds. This is how the finances of business entities-organizations appear, as well as the finances of households.

Money: essence, evolution, types and functions

Money is one of the main inventions of mankind, comparable to the invention of writing, electricity, and electronic communications (the World Wide Web). The entire modern global world economy has a main characteristic - monetary. The evolution of individual private, regional, and national economies to the modern global world market is a long process, spanning almost five millennia. Money appeared as a result of similar economic processes almost simultaneously in all civilized human societies (Ancient Egypt, the Babylonian kingdom, Ancient Greece and Rome, etc.). Consequently, money has an objective economic essence, it is universal and absolutely necessary in the process of exchange, which is impossible without property relations.

There are two concepts of the origin of money:

The first is the origin of money as a result of an agreement between people who were convinced that special intermediaries were needed to move values in exchange.

The second is that money appeared as a result of an evolutionary process, which, regardless of the will of people, led to the fact that some objects stood out from the general mass and took a special place as an intermediary in the act of exchange.

The essence of money

In accordance with the concept, the essence of money is determined. According to the rationalist concept, money is an artificial social convention, a product of the rule of law, an experimental theoretical construction. The evolutionary concept of essence is based on the commodity nature of money, from which it follows that money is a special commodity that serves as a universal equivalent.

According to evolutionary theory, money appeared as a result of the development of commodity circulation.

The evolution of the exchange of goods involves the development of forms of value:

Simple (random);

Expanded;

General;

Monetary.

To transform a product into money you must:

a) general recognition of the role of a universal equivalent for this product;

b) long-term performance of this product as a universal equivalent;

c) the presence of special physical properties suitable for constant exchangeability.

Properties of money:

Money provides universal, immediate exchangeability. They can be used to buy any product.

Money expresses the exchange value of a commodity.

Money acts as the materialization of universal socially necessary labor time contained in a commodity.

Since money has two properties - value and use value - we can talk about the following.

The origin of money is due to the fact that every commodity has a use value and values that are in contradictory unity with each other. At the same time, use value characterizes the material properties of a product that allow it to satisfy the corresponding needs, and value is a social property of a product as part of social wealth. Use and exchange values exist as a unity of opposites. Exchange value is a property of use value, its ability to be exchanged for other use values, that is, the amount of use value that an individual or an organized group of people (corporation) agrees to exchange for a corresponding amount of other use value.

Since value is a social relation, it cannot exist on its own in a physical, material form. Its social character requires expression in a socially acceptable and recognized form. In order for value to be adequately represented as a social relation, a certain substance is necessary that will take on this function. This substance is money.

Prerequisites for the emergence of money:

The transition from subsistence farming to the production and exchange of goods;

The emergence of owners producing products for sale;

Maintaining equivalence.

With the emergence of money, conditions are created for the emergence and then expansion of the market, since the monetary equivalent makes it possible to simplify the exchange of goods for goods.

A single act of exchange breaks down into 2 stages:

Stage 1: Product - Money

Stage 2: Money - Product

Money acquires independent movement.

Exchange is the movement of goods from one producer to another. It involves the comparison of goods of different types, quality and purpose. The basis for measuring goods is their cost.

Money is a commodity that spontaneously emerged in the process of historical development of commodity production and exchange.

Money is a special privileged commodity that plays the role of a universal equivalent.

Money is a mechanism that resolves the contradictions between value and use value.

Functions of money

The function of money as a measure of value

Money as a universal equivalent measures the value of all goods. What makes all goods commensurable is the socially necessary labor spent on their production.

The cost of a product expressed in money is called price. To compare the prices of goods of different values, it is necessary to reduce them to the same scale, i.e. express them in the same monetary units. The scale of prices in metal circulation is the weight of the monetary metal accepted in a given country as a monetary unit and serves to measure the prices of all other goods. Initially, the weight content of the monetary unit coincided with the scale of prices, which was reflected in the names of some monetary units. So, the English pound sterling really weighed a pound of silver

2. The function of money as a medium of exchange

With direct exchange of goods (goods for goods), purchase and sale coincided in time and there was no gap between them. Commodity circulation includes two independent acts, separated in time and space. Money plays the role of an intermediary, allowing one to bridge the gap in time and space and ensure the continuity of the production process.

The features of money as a medium of exchange include the real presence of money in circulation and the short duration of its participation in exchange. In this regard, the circulation function can be performed by inferior money - paper and credit.

3. The function of money as a means of accumulation and savings

Money, providing its owner with the receipt of any good, becomes the universal embodiment of social wealth. So, people have a desire to save them.

In metal circulation, this function of money served as a spontaneous regulator of money circulation: excess money went into treasures, and shortages were filled from treasures.

In conditions of expanded commodity reproduction, the accumulation (i.e., accumulation and saving) of temporarily free funds is a necessary condition for the turnover of capital. The creation of cash reserves smoothes out the unevenness and peculiarities of economic life.

On a state scale, the creation of a gold reserve was required. In connection with the withdrawal of gold from circulation, the size of the gold reserve indicates the wealth of the country and ensures the confidence of residents and non-residents in the national currency.

4.The function of money as a means of payment

Money as a means of payment has a specific movement pattern (T-DO-T) not related to the oncoming movement of goods: goods - fixed-term debt obligation - money.

5. Function of world money

In the role of world money, it functions as a universal means of payment, a universal means of purchasing and a universal materialization of social wealth.

The world money was gold as a means of regulating the balance of payments and the credit money of individual states, exchangeable for gold: mainly the US dollar and the British pound sterling.

In this case, the money is:

A universal means of purchasing for goods imported into one country from another;

A universal means of payment for the repayment of international debt obligations, for the payment of interest on foreign loans and other obligations;

The universal embodiment of social wealth when transferring money from one country to another to place it in foreign banks, providing loans, etc. The transfer of wealth also occurs when gold, in flight from socio-economic conflicts, inflation, from the threat of defeat in war, rushes to banks other countries.

Types of money

Money in its development came in two forms:

Real money;

Signs of value (substitutes).

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 and taking into account production costs. 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 was the round shape of the coin (less wearable), the front side of which was called the obverse, the back side was called the reverse, and the edge was called the edge. In order to prevent the coin from being damaged, the edge was cut.

The first coins appeared almost 26 centuries ago in Ancient China and the Ancient Lydian state. In Kievan Rus, the first minted coins date back to the 9th - 10th centuries. Initially, both zlatniki (coins made of gold) and srebreniks (coins made of silver) were in circulation.

Countries switched to gold circulation in the second half of the 19th century. The leading of these countries was Great Britain, which, together with its colonies and dominions, ranked first in gold production. The reasons for the transition to metal circulation and, above all, to gold were the properties of the noble metal, making it most suitable for fulfilling the purpose of money: uniformity in quality, divisibility and connection without loss of properties, portability (high concentration of value), storability, difficulty of extraction and processing.

The peculiarity of such money is that it has its own value and is not subject to depreciation. This means that if there is full-fledged gold money in circulation in quantities exceeding the actual need, they go out of circulation into treasure. On the contrary, when the need for cash in circulation increases, gold coins are freely returned to circulation from the treasure. Thus, gold coins are able to adapt quite flexibly to the needs of circulation without harming the owners of the money.

Under such conditions, there is no need for certain measures to regulate the mass of money in circulation in accordance with the needs of circulation, which is typical for paper banknotes.

However, gold money has considerable disadvantages: 1. Gold mining did not keep up with the production of goods and did not meet the full need for money;

2. Highly portable gold money could not serve low-value turnover;

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

4. The gold standard generally did not stimulate production and trade turnover.

Due to the above reasons, as well as some other reasons, gold has gradually ceased to be used throughout the world as a material for making money. On the contrary, substitutes for real money or signs of value began to be widely used.

Substitutes for real money (signs of value) are money whose nominal value does not correspond to the real one, i.e. social labor spent on their production. These include: -metal tokens of value (worn gold coins and billon coins, i.e. small coins made of copper and aluminum); paper tokens of value, usually made of paper. There are paper money and credit money.

Paper money appeared as a substitute for gold coins in circulation. In Russia, since 1769, the right to issue paper money belongs to the state. The difference between the nominal value of issued money and the cost of its issue forms the treasury's share premium, which is an essential element of government revenues. Excessive issuance of money to cover the budget deficit leads to its depreciation. Paper money performs two functions: a medium of circulation and a means of payment. They are usually irredeemable for gold and are given a forced exchange rate by the state.

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

A promissory note is a written unconditional obligation of the debtor to pay a certain amount at a predetermined time and place. In the USSR, bills of exchange were used in domestic circulation from 1922 to 1930. and from 1991 to the present. There are a distinction between a promissory note and a bill of exchange, the difference between which is that the payer for a promissory note is the person who issued the bill, and for a bill of exchange - some third party. Treasury bills are bills issued by the government to cover budget deficits and cash gaps. A commercial bill is a bill issued on the security of goods. A bank bill is a bill issued by a bank to its client.

A banknote is a perpetual debt obligation secured by a guarantee from the central (issuing) bank of the country. Initially, banknotes had a gold guarantee, ensuring their exchange for gold. Banknotes are issued in strictly defined denominations, and in essence they are national money throughout the state. In the Russian Federation, the issuer of banknotes is the Central Bank of Russia.

A check is a monetary document of an established form containing an unconditional order from the account holder at a credit institution to pay the holder of the check a certain amount. Checks first appeared in the 16th-17th centuries. in Great Britain and Holland. There are three main types of checks: registered - to a specific person without the right of transfer; bearer - without indicating the name of the recipient; order - to a specific person, but with the right to transfer by endorsement. In accordance with the “Regulations on Checks” of 1929, they also distinguish: settlement checks are a written order to the bank to make a cash payment from the drawer’s account to the check holder’s account, i.e. employees for non-cash payments; cash checks are checks intended for receiving cash from credit institutions.

On March 1, 1992, a new “Regulation on Checks” was adopted, defining the procedure for check circulation in the country.

Using electronic money, i.e. The vast majority of interbank transactions are carried out on the basis of paperless media in the form of electronic signals.

The role of money in modern conditions

In a modern market economy, all goods, services, natural resources, as well as people’s ability to work, acquire the form of money. The qualitatively new role of money, in contrast to money of simple commodity production, is to transform it into money capital, or self-increasing value. The new role of money can be traced through five previous functions.

Thus, in the first function, money not only measures the value of all goods and services, it also measures the value of capital.

When buying and selling various valuables for cash, money acts as a means of circulation for both goods and capital. Money as a means of accumulation and savings is concentrated in the credit system and provides the owner with profit, and accumulation in the form of hoarding gold (ingots and coins as treasure) protects monetary wealth from depreciation.

Money serves a variety of payment relationships, including labor ones. This function mainly ensured the widespread development of the credit system. Functioning on the world market, money ensures the flow of capital between countries. They also serve the production and sale of social capital through a system of cash flows between economic sectors, industries and regions of the country. And these flows are organized by the state, economic entities and partly by individuals, while the turnover of the value of the social product begins and ends with the owner of the capital.

In modern market conditions, the effectiveness of using a currency largely depends on the stability of its monetary unit, that is, on the constancy of the exchange rate and the presence of a tendency towards its increase.

Monetary system concept

The monetary system is a historically established form of organizing money circulation in the country, enshrined in national legislation.

There are two types of monetary systems: systems of metal circulation and systems of circulation of banknotes, when gold and silver are forced out of circulation by credit and paper money that cannot be exchanged for them. Metallic monetary circulation systems, in turn, are divided into bimetallic and monometallic systems. Bimetallic are monetary systems in which the state legislates the role of the universal equivalent (i.e., money) for two noble metals, gold and silver. In this case, free minting of coins is carried out. These metals and their unlimited circulation. In monometallism, the universal equivalent is one monetary metal (gold or silver). At the same time, other banknotes function in monetary circulation: banknotes, treasury notes, and small change. These banknotes are freely exchanged for monetary metal (gold or silver).

Gold monometallism is most widespread in the world. There are three types of gold monometallism: gold coin, gold bullion and gold exchange standards.

Under gold coin monometallism (which existed in Russia until 1914-1918), the prices of goods are calculated in gold, full-fledged gold coins function in the country’s internal circulation, and gold performs all the functions of money. Free minting of gold coins is carried out; all banknotes (banknotes, small change coins) are freely exchanged for gold; free export and import of gold and the functioning of free gold markets are allowed. After the First World War, instead of gold coin monometallism, gold bullion and gold currency (gold exchange) types of monometallism were established. Under the gold bullion standard, banknotes and other money are exchanged only for bars weighing 12.5 kg; under the gold coin exchange, the exchange of banknotes and other money began to be carried out for the currency of the countries where exchange for gold bars was allowed.

After 1929-1933 all forms of gold monometallism were eliminated, and after the Second World War, at the conference in Bretton Woods (USA) in 1944, the so-called Bretton Woods monetary system was formalized, characterized by the following features: gold is forced out of free circulation and acts only as a means of final payment between countries; Along with gold, the dollar (USA) and pound sterling (Great Britain) are international means and reserve currencies; Only reserve currencies are exchanged for gold according to the established ratio, as well as on free gold markets; interstate regulation of currency relations is carried out by the IMF (International Monetary Fund). The Bretton Woods monetary system was a system of international gold exchange monometallism based on the dollar.

In the 70s XX century Due to the reduction in gold reserves in the United States, this system collapsed. In 1976 The Bretton Woods monetary system was replaced by the Jamaican monetary system, formalized by the Agreement of the IMF member countries (Jamaica) in 1976. and ratified by IMF member countries in 1978.

According to the Jamaican monetary system, the special drawing rights SDR were declared world money, which became an international unit. At the same time, the dollar retained an important place in international payments and foreign exchange reserves of other countries. In addition, the demonetization of gold was legally completed, i.e., the loss of monetary functions by gold. At the same time, gold remains a state reserve; it is necessary to purchase the currencies of other countries. At present there is no metal circulation in any country; The main types of banknotes are credit bank notes (banknotes) and government money (treasury notes).

The official currency of Russia is the ruble. The official exchange rate of the ruble to foreign monetary currencies is determined by the Central Bank and published in the press. On the territory of Russia there is cash (banknotes and coins) and non-cash money (in the form of funds in accounts with credit institutions). The Bank of Russia has the exclusive right to issue cash, organize its circulation and withdraw on the territory of Russia.

Principles of organization of modern monetary systems

The principles of organization of the monetary system depend on other elements of the basic (fundamental) block of the monetary system. The basic principles of organizing the monetary system include the following.

1. The principle of stability and elasticity of money circulation: the monetary system must satisfy the economy’s needs for funds, but not allow the development of inflationary processes. The Central Bank ultimately undertakes the obligation to regulate non-cash emission in accordance with the needs of economic turnover, as well as to link the issue of banknotes with the process of production and exchange of goods and services, or the obligation not to issue such a quantity of banknotes that the owners of goods, performers of works and services do not agree to exchange their own assets. The need to service trade turnover actually means that new issues of cash can be carried out either in order to replace physically worn-out banknotes, or to increase national wealth.

2. The procedure and types of security for banknotes, established by legislation, on the basis of which it is determined what can serve as security for the issue of banknotes. These can be inventory items, gold or other precious metals, currency values, securities, insurance policies, guarantees from the government, banks, etc. Today, in all countries, the issue of banknotes is carried out backed by the assets of the central bank.

Inflation

Inflation is the overflow of financial channels with paper money, which leads to their depreciation.

Inflation is a monetary phenomenon, but it is not limited to the depreciation of money. It penetrates into all spheres of economic life and begins to destroy these spheres. The state, production, and the financial market suffer from it, but people suffer the most. During inflation, what happens:

1. Depreciation of money in relation to gold;

2. Depreciation of money in relation to goods;

3. Depreciation of money in relation to foreign currency.

We can read another definition of inflation in modern American textbooks.

Inflation is an increase in the general price level. This, of course, does not mean that all prices necessarily rise; even during periods of fairly rapid inflation, some prices may remain relatively stable while others fall. One of the big pain points is that prices tend to rise very unevenly. Some jump, others rise at a more moderate pace, and others do not rise at all. Inflation is measured using a price index. Recall that the price index determines their general level in relation to the base period. The inflation rate for a given year can be calculated as follows: subtract last year's price index from this year's price index, divide this difference by last year's index, and then multiply by 100%.

To ensure that the economy does not experience inflationary crises:

1. There must be a constant balance of the state budget;

2. The central bank must pursue ideal policies;

3. The state should not interfere in the distribution of income;

4. The country should be populated by citizens with a healthy market psychology, people devoid of inflationary expectations.

1.2 Money circulation and characteristics of total money turnover

Cash

Cash turnover includes the movement of the entire cash supply over a certain period of time between the population and legal entities, between individuals, between legal entities, between the population and government agencies, between legal entities and government agencies.

Cash movement is carried out using various types of money: banknotes, metal coins, paper money (treasury notes). Cash issuance is carried out by a central bank (usually a state bank). It issues cash into circulation and withdraws it if it has become unusable, and also replaces the money with new types of bills and coins.

Cash is used:

for the circulation of goods and services;

for settlements not directly related to the movement of goods and services, namely: settlements for the payment of wages, bonuses, benefits; for the payment of insurance compensation under insurance contracts; when paying for securities and paying income on them; on household payments for utilities, etc.

Cash is the currency of one of the countries in any physical form held by a specific individual or legal entity.

An example of physical representations would be bills and coins. Cash is inconvenient because it cannot be paid remotely (for example, on the Internet); for this you need to use electronic money or non-cash payment, but it is very convenient when you need to pay for something confidentially.

Non-cash money turnover is the movement of value without the participation of cash through the transfer of funds to the accounts of credit institutions, as well as against mutual claims.

Non-cash payments are carried out on the basis of payment documents in the form established by the Central Bank and in compliance with the appropriate document flow. Non-cash turnover is realized through appropriate methods of organizing non-cash payments.

Depending on the method of payment, the type of payment documents and the organization of document flow in the bank, the following main forms of non-cash payments between payers and recipients can be distinguished: settlements by payment orders, by letter of credit, checks, by collection, payment cards.

The basis of non-cash payments are interbank payments. Settlements between banks in Russia are made, as already noted, through cash settlement centers created by the Central Bank of the Russian Federation. Banking transactions for settlements can also be carried out through correspondent accounts of banks opened to each other on the basis of interbank agreements.

Monetary aggregates

Cash is the basis of the entire monetary system, the most liquid monetary instrument and monetary reserve, which attaches particular importance to ensuring the strength and stability of the cash component of the money supply. The most important quantitative indicator of money circulation is the money supply. The money supply is the total volume of purchasing and payment instruments that serve economic turnover and belong to individuals, legal entities and the state. The characteristics of the total money turnover are reflected in monetary aggregates, which are indicators of the volume and structure of the money supply. In economic theory, an aggregate is a collection of specific economic units that are treated as if they constituted one unit. Monetary aggregates are used to analyze quantitative changes in money circulation on a certain date and for a certain period, as well as to develop measures to regulate the rate of change in the money supply and its individual components. Based on this analysis, the Central Bank develops the main guidelines for monetary policy and exercises control over the money supply in circulation. The principle of constructing aggregates is based on the fact that all goods can be ranked from absolutely liquid to absolutely illiquid. Consistently adding less liquid ones to the most liquid ones, we obtain, respectively, the indicators M0, M1, M2... The aggregates M0, Ml, M2, MZ make up the total money supply. Each of the aggregates represents a part of the money supply. The M2 aggregate is taken as an indicator of the money supply used for macroeconomic analysis and statistics.

Monetary aggregates are indicators of the structure of the money supply. Monetary aggregates are types of money and funds that differ from each other in the degree of liquidity (the ability to quickly convert into cash). Different countries have different monetary aggregates. The IMF calculates a common M1 indicator for all countries and a broader indicator of “quasi-money” (time and savings bank accounts and the most liquid financial instruments traded on the market).

Monetary aggregates are a hierarchical system - each subsequent aggregate includes the previous one.

The monetary aggregate M1 includes cash in circulation outside the banking system (monetary aggregate M0) and balances in national currency on settlement, current and other demand accounts of the population, non-financial and financial (except credit) organizations that are residents of the Russian Federation.

The monetary aggregate M2 includes the monetary aggregate M1 and balances in national currency in the accounts of time deposits and other funds attracted for a period of time from the population, non-financial and financial (except credit) organizations that are residents of the Russian Federation.

In Russian financial statistics, monetary aggregates M0, M1, M2, M3 are used to analyze ongoing changes.

Unit M0 - cash in circulation.

Aggregate M1 -- aggregate M0 + funds of enterprises in various bank accounts, demand deposits of the population, funds of insurance companies.

Aggregate M2 -- aggregate M1 + time deposits of the population in savings banks, including compensation.

Unit M3 -- unit M2 + certificates and government bonds.

The Central Bank of the Russian Federation calculates monetary aggregates M0 and M2. Aggregate M2 represents the volume of cash in circulation (outside banks) and balances in national currency in the accounts of non-financial organizations, financial (except credit) organizations and individuals who are residents of the Russian Federation.

Law of money circulation

The law of money circulation was formulated by K. Marx. In his work “Capital,” K. Marx gave a scientific explanation of the relationship between such economic indicators as the money supply, the sum of prices for goods and services, credit, mutual and non-cash payments, and the velocity of money. The law can be represented by the formula:

KD = SCT-K-P-VP/ S

where CD is the amount of money needed for circulation;

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

K - the sum of prices of goods sold on credit;

P - amount of payments on obligations;

VP - the amount of mutually extinguishable obligations;

C is the turnover rate of the currency unit of the same name.

The basic principle of monetary circulation follows from the law of monetary circulation - limiting the money supply to the needs of trade turnover. The amount of money an economy needs depends on the following three factors:

The number of goods and services sold on the market;

Price level of goods and tariffs;

Velocity of money circulation.

The amount of money in circulation primarily depends on the number of goods in circulation. The greater the number of goods circulating in a country, the more money, other things being equal, is required to service trade turnover. Money supply growth targets are determined for a target period, for example, a year in advance, but can be adjusted during the specified period. When setting targets, the Bank of Russia is guided by the following main indicators: projected growth of GNP in real terms; estimated velocity of money circulation in the forecast period; the maximum permissible level of price growth.

Section 2. Finance

The term “finance” comes from the Latin word “finansia”, which means “money payment”. The long process of development of commodity-money relations has changed the content of the phenomenon of finance.

Finance is economic social relations, the subject of which is the processes of accumulation, distribution and use of funds in the process of using the social product and income.

Monetary relations turn into financial ones when, as a result of the production of goods and the provision of services during their sale, funds of funds are created. Funds of funds created at the level of the state and local governments are called centralized funds, and funds created at the level of business entities and households are called decentralized.

Finance as a subjective cost instrument for the functioning of economic entities forms a specific mechanism for making decisions regarding the processes of formation and use of monetary funds. The object of finance is financial resources, which are a set of funds of funds at the disposal of business entities, the state, and households, i.e., it is money that serves financial relations. They are formed in the process of material production, where new value is created and gross domestic product and national income arise.

Finance is a set of social relations formed in real money circulation during the formation, distribution and use of funds of funds.

Finance expresses economic relations related to the provision of sources of financing to the state, municipal and private sectors of the economy, spheres of production, circulation and households. The functioning of finance is aimed at the effective development of a socially oriented economy. Finance contributes to the achievement of general goals of economic development, which requires its optimal organization.

The main participants in financial relations are:

1) state;

2) economic entities;

3) population.

Main features of public finance:

1) monetary relations between two entities (where there is no money, there can be no finance);

2) subjects have different rights, one of them (the state) has special powers.

3) in the process of these relations, the state budget is formed;

4) regular receipt of funds into the budget is ensured by law.

The market economic mechanism forms and implements a system of economic relations:

Directly between business entities - producers and consumers (sellers and buyers) of goods and services;

In the sphere of production and circulation;

Between business entities (taxpayers and the state);

In the financial and budgetary sphere - between economic entities (employers and employees);

In the field of labor relations.

Economic entities have many faces and function simultaneously as:

Producer and consumer in the market of goods and services;

Borrower and investor in the financial market;

In a market economy, 3 specific main markets interact:

1) market for goods and services;

2) labor market;

3) financial market.

All three markets are in constant interaction, performing specific functions of the market economic system.

The functioning of finance as an economic category is necessarily associated with the action of objective economic laws.

At the present stage, such essential characteristics of finance as the social orientation of financial relations are especially emphasized, which enhances the importance of issues of clear interaction between all participants in financial relations in a market economy.

In the world practice of developed countries, there are two main models of market economies that ensure the economic and social progress of society, differing primarily in the degree of state regulation of the economy.

The essence of a particular model is determined by the economic and social role of the state in the development of society. The tax capacity of production and income depends on which model of the market economic system is implemented in post-socialist states.

Finance is an integral link between the creation and use of national income of countries. Finance affects production, distribution and consumption and is objective in nature. They express a certain sphere of production relations and belong to the basic category.

The role of finance in the economy is constantly increasing, reflecting the increasingly complex redistribution relations in society.

Centralized funds of funds are created through the distribution and redistribution of national income created in sectors of material production. These include:

state budget;

off-budget funds.

Decentralized funds of funds are formed from the cash income and savings of the enterprises and the population themselves. They are the basis of the financial system, since it is in this area that the predominant share of the state’s financial resources is formed. Part of these resources is redistributed in accordance with the norms of financial law into budget revenues of all levels and into extra-budgetary funds. At the same time, a significant part of these funds is subsequently used to finance budgetary organizations; commercial organizations in the form of subventions, subsidies, and is also returned to the population in the form of social transfers (pensions, benefits, scholarships, etc.).

Among decentralized finance, the key place belongs to the finance of commercial organizations. Here material wealth is created, goods are produced, services are provided, and profit is generated, which is the main source of production and social development of society.

The characteristic features of finance are:

the distributive nature of relations, which is based on legal norms or business ethics, is associated with the movement of real money, regardless of the movement of value in commodity form;

one-way (unidirectional), as a rule, the nature of cash flow;

creation of centralized and decentralized funds of funds.

The essence of finance is manifested in its functions: distributive, control and stimulating. At the same time, distribution and control functions are interconnected and are performed simultaneously.

Distribution function of finance. When distributing national income, basic, or primary, incomes are created, the amount of which is equal to national income. Formed during the distribution of national income among participants in material production, these incomes are divided into two groups:

wages of personnel employed in the field of material production;

income of enterprises in the sphere of material production.

But since the state also has other areas and industries where national income is not created, it is necessary to allocate funds for their development. These are industries such as, for example, the defense industry, education, health care, management, social security and maintenance of depressed areas. To ensure these monetary expenses, with the help of finance the state withdraws part of the income created in the sphere of material production, directing it to other spheres. This results in a redistribution of national income with the active participation of finance. In particular, in our country, the redistribution of national income occurs in the interests of structural restructuring and development of agriculture, transport, energy, conversion of military production and in favor of the least affluent segments of the population.

Control function of finance. The control function is to ensure financial control over the distribution of gross domestic product and national income among the relevant funds, as well as their expenditure for their intended purpose. Control covers both the production and non-production spheres, although income is not created in it. The purpose of financial control is to ensure the rational and economical use of material, labor and financial resources, natural resources and the reduction of unproductive expenses and losses.

The control function of finance is ensured by the multifaceted activities of financial authorities: employees of the financial system, the treasury, and the tax service who exercise financial control. Control can be national, departmental, intra-economic and public.

An independent type of control is audit.

The Ministry of Finance of Russia and its local authorities play an important role in the implementation of financial control.

Stimulating function of finance. This function of finance allows the state, with the help of various financial levers, to influence the development of enterprises and entire industries in the direction required by society. Such levers of influence on economic processes are:

A budget from which funds are allocated for the development of a specific industry or facility;

Prices and tariffs, which even in a market economy allow the state to influence the financial condition of companies through government intervention in the pricing mechanism;

Taxes, which, as the most powerful financial instrument, allow stimulating production at a low level, and slowing it down at an excessively high level;

Export-import duties, which, due to low, preferential or high levels, make export-import transactions unevenly profitable.

The simultaneous impact of several financial levers greatly enhances the effect on production development.

Financial resources are the totality of all funds that are at the disposal of the state, enterprises, organizations, institutions for the formation of the necessary assets in order to carry out all types of activities, both at the expense of income, savings and capital, and at the expense of various types of income. An important component of financial resources are banking resources.

Financial resources are intended:

to fulfill financial obligations to the budget, banks, insurance organizations, suppliers of materials and goods;

incurring costs for expansion, reconstruction and modernization of production, acquisition of new fixed assets;

remuneration and material incentives for enterprise employees;

financing other costs.

Financial resources are divided into:

Centralized funds (state budget, extra-budgetary funds);

Decentralized financial resources (enterprise funds).

There are also financial resources of the state, regions, and enterprises.

The main source of formation of centralized funds at the macro level is national income. On the basis of the distribution and redistribution of national income, centralized funds of funds are formed. Part of the national income is generated and remains at the disposal of enterprises, that is, decentralized financial resources are created at the micro level, which are used for production costs.

The main source of financial resources of an enterprise is its profit from production activities.

The use of financial resources is carried out mainly through special-purpose monetary funds, although a non-fund form of their use is also possible.

The financial resources of the state and enterprises are the direct objects of financial management, that is, the management of their formation, use and movement of cash flows.

The availability of sufficient financial resources and their effective use predetermine the good financial position of the enterprise, solvency, financial stability, and liquidity. In this regard, the most important task of enterprises is to find reserves for increasing their own financial resources and their most effective use in order to improve the efficiency of the enterprise as a whole. Effective formation and use of financial resources ensures the financial stability of enterprises and prevents their bankruptcy.

State financial system and its structure

The main documents regulating the financial system of the state are:

Tax Code of the Russian Federation;

Budget Code of the Russian Federation;

laws and regulations in the field of finance.

From an institutional point of view, the financial system is a collection of financial institutions.

From an economic point of view, the financial system is a set of forms, methods of formation, distribution and use of funds of funds of the state and enterprises.

The financial system is a form of organization of monetary relations between all subjects of financial relations for the distribution and redistribution of the social product. The financial system of the state consists of three parts:

1) National finances - have a three-level structure:

Federal finances,

Subjects of the federation,

Finances of municipal entities.

2. Finance of enterprises - economic entities.

3. Household finances.

Each link of the financial system performs its specific tasks and serves a specific group of financial relations.

The main task of national finance is to concentrate financial resources at the disposal of the state and direct them to finance national needs. They are formed from taxes, fees, duties, income from state property, etc.

Topic 1.4. Finance of enterprises of various forms of ownership.

Questions: 1. The essence and functions of finance of commercial enterprises and organizations.

2. Principles of organizing the finances of an enterprise.

3. Factors influencing the organization of finances of an enterprise.

4. Revenue from sales of products. The concept of depreciation and accelerated depreciation.

5. Fixed and current assets, intangible assets: concept and general characteristics.

6. Profit and profitability as indicators of the efficiency of an enterprise. Distribution of enterprise profits. Types of profitability.

7. Characteristics and methods for calculating the main indicators of the financial condition of the enterprise.

8. Features of financial activity under various organizational and legal forms of business.

9. Financial planning: essence and content.

10. Financial aspects of drawing up a business plan.

Topic 1.5. Insurance system.

Questions: 1. Concept and socio-economic content of the insurance process. Insurance market. Participants in insurance relations.

2. Classification and types of insurance. Organization of the insurance process in the Russian Federation

3.Economic and financial basis of insurance

Section 2. Credit. Banks. Securities.

Topic 2.1. Loan capital and credit.

Questions: 1. Credit as a form of movement of loan capital.

2. Stages of development of credit relations. Basic principles of credit. Functions of credit.

3. Classification of loans. Forms of loans.

Topic 2.2. Banks. Banking system.

Questions: 1. The concept of a bank and the banking system. Central Bank and its functions

2. Commercial banks

Active and passive operations of banks. Commission and trust operations of banks. Bank profit. Bank liquidity. Correspondent relationships between banks

4. Cashless payments. Forms and principles of organization. Payments with plastic cards.

Topic 2.3. Securities market.

Questions: 1. Securities market: basic concepts.

2. Market structure, types of securities.

Section 3. Financing and lending of capital investments.

Topic 3.1. Capital investments.

Questions: 1. Basic concepts of financing and lending for capital investments.

2. Structure of capital investments.

3. Sources of funds for capital investments

4. Principles of short-term and long-term lending. Types of long-term loans. Mandatory conditions for long-term lending.

Topic 3.2. Investments. Investment policy.

Questions: 1. The concept of investments and their types.

2. Risky investments. Portfolio investments. Direct investments. Annuity. Transfer investments. State investment policy.

Section 4. Monetary system and international credit relations.

Topic 4.1 World monetary system. Monetary system of the Russian Federation.

Questions: 1. World monetary system.

2. Monetary system of the Russian Federation.

3. Balance of payments of the Russian Federation.

4. Problems of external debt of the Russian Federation

Topic 4.2. International credit relations.

Questions: 1. The concept of international credit, its functions and classification of its forms.

2. Foreign trade lending

3. International long-term loan

4. International monetary organizations

Section 1. Financial system.

Topic 1.1. Money, monetary circulation.

The appearance, essence and functions of money.

The role of money in a modern market economy.

The emergence of money is associated with the departure from a subsistence economy, the emergence of a social division of labor, the exchange of labor products and the need to compare different products of labor.

Subsistence farming, characterized by a low level of development of productive forces, was characterized by the production of products for own consumption. The exchange concerned only the occasional surplus left over. The social division of labor (separation of agriculture, cattle breeding, and then crafts) gave rise to a constant exchange of products of labor, i.e. the need for commodity production. Exchange is the movement of goods from one commodity producer to another and presupposes equivalence (livestock = grain = ax = linen), which requires comparison of goods that are different in type, quality, shape, and purpose.

The basis for measuring different goods is cost of goods , i.e. social labor expended in the process of production of a commodity and embodied in this commodity. When exchanging one product for another on the market, society thereby confirms that labor was spent on these goods, i.e. both goods have value. Due to the fact that the labor expended on the production of individual goods is different, the goods have different values. Hence the need arises to quantify social labor or value, i.e. the concept appears exchange value (1 sheep is equal to 1 bag of grain).

Exchange value - this is the ability of a product to be exchanged for other goods in certain proportions, i.e. a quantitative comparison of products is provided.

In natural production, the product satisfied the needs of the producer and his family, i.e. for them it mattered as use value (the ability of a product to satisfy any human need). When producing a product for exchange, the commodity producer is interested primarily in its value and only secondarily in its use value, because if a product does not have a use value, then no one needs it and it cannot be exchanged.

So, a product not intended for exchange has only a use value for the producer. When exchanged, a product must have value for the producer and use value for the buyer.

The evolution of the process of exchange of goods has led to the development forms of cost of goods . There are four forms of value: simple (or random), expanded, general and monetary.

First form - simple , or random , the form of value is characteristic of a low stage of development of productive forces. In subsistence farming, surplus products arose only periodically from case to case. Goods placed on the market accidentally measured their value through the medium of another good. The exchange value of such an exchange fluctuated sharply in time and space. However, already in this simple form of value the foundations of future money are laid (for example, 1 sheep is equal to 1 bag of grain).

For the pastoralist, the sheep is important not as a use value, but as a value that manifests itself only in exchange on the market. He needs the use value of grain. In the market, the commodity-sheep seeks its antipode and plays an active role, as the herder seeks to find grain in exchange for his commodity. Grain serves as a material (form) to express the value of a sheep, i.e. passively reflects the social labor expended in raising the sheep. Consequently, grain becomes an external manifestation of social labor, i.e. equivalent, and is in equivalent value form.

The equivalent form of value has the following features:

The use value of an equivalent commodity (grain) serves as a form of manifestation of its opposite - the value of a commodity (sheep);

Private labor, individual labor spent on the production of an equivalent commodity (grain), expresses its opposite - social labor;

Concrete labor contained in an equivalent product (grain) serves as a form of manifestation of abstract labor.

The second one is expanded form of cost . With the further division of labor and the growth of production, more and more products and goods enter the market. One good is exchanged with many other equivalent goods. For example,

1 bag of grain = 1 sheep

1 ax

1 arshin of canvas, etc.

Third - generalized form of value when a product becomes the main purpose of production. Each commodity producer, for the product of his labor, sought to obtain a universal commodity that everyone needed. In connection with such an objective need, goods began to be pushed out of the commodity mass, acting as a universal equivalent. Common equivalents were cattle, furs, and among the tribes of Central Africa - ivory. However, such goods did not stay in this role for long, since they did not satisfy the requirements of commodity circulation and their properties did not meet the conditions of equivalence.

As a result of the development of exchange, one commodity, mainly metal, becomes the universal equivalent over a long period. This process of designing a product as a universal equivalent is very complex and lengthy. He determined the appearance of the fourth form - monetary form of value .

The following features are characteristic of the monetary form of value:

One product monopolizes the role of the universal equivalent for a long time;

The natural form of a money commodity merges with its equivalent form. This means that the use value of the commodity-money is externally hidden, and only its general social form of value remains.

Money, by its origin, is a commodity. Having stood out from the general commodity mass, they retain their commodity nature and have the same two properties as any other product. Money arose spontaneously from exchange. Various goods acted as money, but precious metals - silver and gold - turned out to be more suitable.

Money - a historical category that develops at each stage of commodity production and is filled with new content, which becomes more complex with changes in production conditions. In the distant past, the universal equivalent was furs, livestock, and jewelry. Later, when exchange became systematic, metals began to be used as money, first copper, then silver and finally gold.

Thus, the peculiarity of money is expressed as follows:

Money is a spontaneously released commodity;

Money is a special privileged commodity that plays the role of a universal equivalent;

Money resolved the contradictions between use value and value inherent in all goods, including money.

To transform a product into money you must:

General recognition of this fact by both buyer and seller, i.e. both subjects cannot refuse when exchanging their values for a given commodity-money;

The presence of special physical properties of the commodity-money, suitable for constant exchangeability;

Long-term fulfillment of the role of a universal equivalent by the commodity-money.

The essence of money as an economic category is manifested in its functions, which express the internal basis, the content of money.

Money performs the following five functions: measure of value, medium of exchange, means of payment, means of accumulation and savings and world money .

Money as a universal equivalent measures the value of all goods. However, it is not money that makes goods comparable, but the socially necessary labor spent on the production of goods that creates the conditions for their equalization. All goods are products of socially necessary labor, therefore real money (silver and gold), which has value, can become a measure of their value. In this case, measuring the value of goods in money occurs ideally, i.e. The goods owner does not necessarily have cash.

The value of a product expressed in money is called at the cost . It is determined by the socially necessary labor costs for its production and sale. The basis of prices and their movement is the law of value. The price of a product is formed on the market, and if supply and demand for goods are equal, it depends on the cost of the product and the value of money. When real money functions, the price of goods is directly proportional to the value of these goods and inversely proportional to the value of money. Due to the discrepancy between supply and demand in the market, the price of a product inevitably deviates from its value. Based on such deviations of prices (up and down) from the cost of the commodity producer, it is determined which goods are not produced enough and which are produced in excess.

Under the gold standard, prices depended on the value of the commodity, since the value of money—gold—was relatively constant. Under paper money and banknote systems, the prices of goods are expressed in terms of values that do not have their own value, so they cannot accurately reflect the value of goods. This results in differences in prices for the same goods, which makes it difficult for the commodity producer to make correct rational decisions about the production of goods.

Quantitative assessment of the value of a product in money, i.e. the price of a commodity provides the opportunity to measure not only the products of social labor, but also part of the same monetary commodity - silver or gold. To compare the prices of goods of different values, it is necessary to reduce them to the same scale, i.e. express them in the same monetary units. Price scale in metal circulation, the weight amount of monetary metal accepted in a given country as a monetary unit and used to measure the prices of all other goods is called.

Commodity circulation includes: sale of goods, i.e. turning it into money and buying goods, i.e. transformation of money into goods (T - D - T). In this process, money plays the role of an intermediary in the exchange process. The functioning of money as a means of circulation creates conditions for the commodity producer to overcome the individual, time and spatial boundaries that are characteristic of the direct exchange of goods for goods. Money remains constantly in the exchange and continuously serves it. This means that money contributes to the development of commodity exchange.

Money, being a universal equivalent, i.e. providing its owner with the receipt of any product, they become the universal embodiment of social wealth. Therefore, people have a desire to accumulate and save them. To create treasures, money is taken out of circulation, i.e. the act of sale and purchase is interrupted. However, simply accumulating and saving money does not bring additional income to the owner.

Due to certain circumstances, goods are not always sold for cash. Reasons: unequal duration of periods of production and circulation of various goods, as well as the seasonal nature of the production and sale of a number of goods, which creates a shortage of additional funds for the business entity. As a result, the need arises for the purchase and sale of goods with payment in installments, i.e. on credit. Money as a means of payment has a specific form of movement: T - O, and after a predetermined period: O - D (where O is a debt obligation). With such an exchange, there is no counter-movement of money and goods; repayment of the debt obligation is the final link in the purchase and sale process. The gap between goods and money in time creates the danger of non-payment by the debtor to the creditor.

Foreign trade relations, international loans, and the provision of services to an external partner gave rise to the emergence of world money. They function as a universal means of payment, a universal means of purchase and a universal materialization of social wealth. World money acts as an international means in settlements of international balances: if payments of a given country for a certain period exceed its cash receipts from other countries, then money is a means of payment.

All five functions of money represent a manifestation of the single essence of money as a universal equivalent of goods and services; they are in close connection and unity. Logically and historically, each subsequent function presupposes a certain development of previous functions.

From the above, three main properties of money emerge that reveal its essence:

Money provides universal, immediate exchangeability. They can be used to buy any product;

Money expresses the exchange value of goods. Through them the price of the product is determined, and this provides a quantitative comparison of goods with different use values;

Money acts as the materialization of universal labor time contained in a commodity.

The role of money in a modern market economy. Modern capitalism has led to a modification of the functions of money. The universal nature of commodity-money relations also caused the full development of money as a universal equivalent. In today's society, all goods, services, natural resources, as well as people's ability to work, acquire the form of money. The qualitatively new role of money (as opposed to money of simple commodity production) is that it turns into money capital, or self-increasing value. This role can be traced through five previous functions.

In the first function, money not only measures the value of all goods and services, but also capital. When buying and selling various valuables for cash, money acts as a means of circulation for both goods and capital. Money as a means of accumulation and saving is concentrated in the credit system and provides the owner with profit. Accumulation in the form of gold hoarding (accumulation of gold in the form of bars, coins, jewelry by individuals, by purchasing it on the market in exchange for their national monetary unit) protects monetary wealth from depreciation. Money serves a variety of payment relationships, including labor ones. It was this function of money that ensured the widespread development of the capitalist credit system. Functioning on the world market, money ensures the flow of capital between countries. Money serves the production and sale of social capital through a system of cash flows between economic sectors, industries and regions of the country. The organizers of these cash flows are the state, business entities and, partly, individuals. Moreover, the turnover of the value of the social product begins and ends with the owner of the capital.

The quarter of a century that elapsed from the beginning of the First to the Second World War brought a lot of new things into the monetary sphere. Naturally, an attempt to comprehend this new thing led to a revision of some established views in foreign literature on issues of money circulation and credit.
The instability of the foundations of the capitalist system caused by the First World War and its consequences could not but affect the monetary sphere. The pre-war monetary system collapsed under the weight of the world war, which caused enormous expenses, depletion of the economies of the warring countries and the growth of national and international debt.
The unprecedented scale of inflation, which has become global, was one of the indicators of the general crisis of the capitalist system.
Back in 1920, describing the depreciation of the currencies of European countries caused by the war at the Second Congress of the Comintern, Lenin said:
“This fact shows that the mechanics of the world capitalist economy are completely disintegrating. Those trade relations on which the receipt of raw materials and the sale of products rest under capitalism cannot be continued; It is not possible to continue them precisely on the basis of the subordination of a number of countries to one country, due to changes in the value of money" 1.
The crisis of the capitalist system also manifested itself in the inability of capitalism to restore and maintain the stability of money necessary to ensure the normal course of capitalist reproduction and normal world economic relations.
Even before the start of the global economic crisis of 1929, in a speech at the plenum of the Central Committee of the All-Union Communist Party of Bolsheviks in April 1929, Comrade Stalin emphasized, “... that capitalist stabilization is not strong and cannot be strong, that it is being shaken and will continue to be shaken debt of events, due to the aggravation of the crisis of world capitalism"2.

The fragility of post-war stabilization and, in particular, the post-war organization of monetary systems was revealed with all its force during the global economic crisis of 1929-1033. This crisis turned out to be the most pressing and the most severe of all world economic crises precisely because it played out in the context of a general crisis of capitalism. As Comrade Stalin pointed out,... “the crisis was not limited to the sphere of production and trade and also captured the credit system, currency, the sphere of debt obligations, etc., breaking up the traditionally established relations both between individual countries and between social groups in individual countries *1.
The breakdown of traditionally established relations between individual countries and individual social groups, noted by Comrade Stalin during the global economic crisis, manifested itself in various forms, prompting a revision of a number of customary ideas.
So, for example, even on the eve of the global currency crisis, which began with the collapse of the gold standard in England on September 21, 1931, the marked breakdown was extremely clearly revealed in the movement of short-term loans and in the sphere of debt relations associated with them.
The usual pursuit of cash in conditions of economic crises, caused by disturbances in the process of capital circulation and, at the same time, a lack of capital in the form of money, reached unprecedented proportions during the world economic crisis of 1929-1933.
Foreign short-term investments, which had accumulated mainly during the period of stabilization of currencies in a few “gold centers,” were feverishly withdrawn, creating a threat to the very stability of these centers. The growth of this threat further spurred the demand for short-term investments by creditors, as well as the flight of national capital from a number of countries, England, the USA and France alternately experienced an attack on gold reserves throughout 1931-1930.
Under these conditions, the usual reasons for the movement of short-term investments, namely changes on the side of the balance of payments, turned out to be almost weightless in the face of new factors generated by the situation of the general crisis of capitalism.
Purely commercial incentives for capital migration and, in particular, the attractiveness of short-term investments by countries with higher discount rates in the big market have lost their significance.
It is enough to point out that the increase in the discount rate in the countries that were subjected to a gold attack did not provide an influx of capital! in these countries, as well as stopping their seizures and leaks from these countries.
II reasons for the demand for short-term investments, and the choice of refugees for them by creditors were determined by new, unusual for previous periods, factors, primarily the desire to
maximum mobility and liquidity of capital in conditions of aggravating political and economic; instability of capitalism.
It is no coincidence that in foreign literature, especially under the influence of the global economic crisis, the motives of “anticipation” have become so widespread.

More on the topic THE MAIN PROBLEMS OF MONEY CIRCULATION AND CREDIT AS COVERED BY MODERN BOURGEOIS ECONOMISTS:

5. Soviet model of \r\neconomics and Soviet \r\neconomic science
THE MAIN PROBLEMS OF MONEY CIRCULATION AND CREDIT AS COVERED BY MODERN BOURGEOIS ECONOMISTS

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KUNGUR FORESTRY TECHNICAL TECHNIQUE

Examination on the discipline:

“Finance, money circulation and credit”

Completed: student

groups BU-51sz

5th year correspondence course

Zernina Elena

Checked:

Kainaeva L.P.

Introduction

1. Nature, essence, forms and functions of money

1.1 The nature of money

1.2 The essence of money

1.3 Forms of money

1.4 Functions of money

2. Financing of enterprises of various forms of ownership: joint-stock companies; budgetary enterprises; insurance companies

Practical task

Conclusion

References

Introduction

In a market economy, the most important indicator of the well-being of the state, entrepreneurs, and the entire population of the country is the stability of finances and monetary circulation. Financial results are the end result of the activities of millions of people. The lack of financial resources at the state level and at the enterprise level indicates an economic crisis in society. To overcome this crisis, it is necessary to financially improve the state's economy. At the same time, finance has become the main lever of state regulation of the economy in order to get the country out of the crisis.

Economic activity in a market economy places demands on all private participants in the economic process for high competence in the field of finance and credit. Knowledge of these disciplines is the key to successful work in all spheres of human activity.

1. Nature, essence, forms and functions of money

1.1 The nature of money

Primitive tribes faced a difficult question: how, in what exchange ratios, to make fair exchanges of certain goods? Since there was no generally accepted equivalent (equal in value of a product) with which to measure the value of other goods, it was then impossible to find a satisfactory answer. Therefore the initial simple exchange one useful thing to another was random and disposable. In subsistence farming, the product satisfied the needs of the producer and his family, that is, it had for them use value .

Later, goods began to be produced in a wide variety. The owner of a product could exchange it for several other useful products, each of which served as its equivalent. This expanded form of exchange goods (T1 = T2 = T3). There is a comparison of goods that are different in type, quality, and purpose. The basis for measuring goods is their price (not price!), i.e. socially necessary labor spent on the production of goods. However, in this case, one thing was directly exchanged for another, which did not always suit sellers and buyers. If, suppose, a grain owner wanted to buy fur, and a fur trader needed fish, then the exchange became impossible or too difficult.

The social division of labor (separation of agriculture and cattle breeding, and then crafts) required a constant exchange of labor products. In every country and major economic regions appeared in local markets general equivalents - the most popular products for which other useful things could be exchanged. For example, among the Greeks and Arabs it was cattle, among the Slavs it was fur. In order to ensure the comparability of various labor costs, the concept of exchange value appears.

Exchange value is the ability of a commodity to be exchanged for other goods in certain proportions. For example, 1 sheep = 2 bags of grain.

However, the various local equivalents did not meet international trade requirements. From the totality of goods, one product gradually stands out, for which all the others are exchanged - universal equivalent : money. Historians have found evidence that among the peoples of the world, a variety of goods played the role of money: salt, cotton fabric, copper bracelets, gold dust, horses, shells, and even dried slaves. As social wealth increases, the role of universal equivalent is assigned to precious metals (silver, gold), which, due to their rarity, high value with low volume, homogeneity, divisibility and other useful qualities, began to play the role of monetary material.

Bimetallism persisted until the end of the 19th century. However, in Europe in the 18th-19th centuries. gold and silver coins were used in circulation, payments and other transactions along with paper money. The invention of the latter is attributed to ancient Chinese merchants. Initially, receipts for acceptance of goods for storage, payment of taxes, and issuance of a loan acted as additional means of exchange. Their circulation expanded trade opportunities, but at the same time often made it difficult to exchange these paper duplicates for metal coins.

Paper money is convenient to use and easy to carry. It is good to remember the words of the great Englishman Adam Smith, who said that paper money should be considered as a cheaper instrument of circulation. Indeed, during circulation, coins are worn out and some of the precious metal is lost. In addition, the need for gold in industry, medicine, and the consumer sector is increasing. And most importantly, trade turnover on a scale amounting to trillions of dollars, marks, rubles, francs and other monetary units is simply beyond the power of gold to handle. The transition to paper money circulation sharply expanded the scope of commodity exchange. The value of paper money is determined only by the number of goods and services that can be purchased with this money. XX century marked by the transition to the circulation of paper money and the transformation of gold and silver into goods that can be bought at market prices.

1.2 The essence of money

Money is a special type of universal commodity, used as a universal equivalent, through which the value of all other goods is expressed. Money is a unique commodity that functions as a means of exchange, payment, measurement of value, and accumulation of wealth. In the modern economy, the circulation of money is an invariable condition for the circulation of almost all types of goods. Thanks to money, it is possible to have a single measure of value, which is necessary when comparing and exchanging goods.

Money is a good that functions as a means of measuring the value of other goods (universal equivalent) or as a means of making payments in exchange (medium of exchange). Money is those goods that have perfect liquidity. Money is an economic category in which relationships between people are manifested and with the help of which they are built. The purpose of money is to save transaction costs of market interactions.

The essence of money is that it is a specific commodity, with the natural form of which the social function of a universal equivalent is combined. The essence of money is expressed in the unity of three properties:

Money directly provides unlimited exchange for any product;

Days express the exchange value of goods. With the help of money, the price of a product is determined, which makes it possible to quantitatively compare goods with different consumer values;

Money acts as the materialization of universal labor time contained in a commodity.

1.3 Forms of money

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

Real money - money whose nominal value (the value indicated on it) corresponds to the real value, i.e., the value of the metal from which it is 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.

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

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

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

Paper money - representatives of real money. They appeared as substitutes for gold coins in circulation (in Russia - in 1769). They were easier to store and were convenient when paying for small quantities of goods. The right to issue belongs to the state. The difference between the nominal value of money and the cost of issuing it forms the income of the state treasury. They perform two functions: a medium of exchange and a means of payment. The absence of gold exchange prevents paper money from leaving circulation. The reasons for the depreciation of paper money are their excess issue, the discrepancy between the country's exports and imports.

Credit money – arise when the purchase and sale is carried out on credit, i.e., on an installment plan. Credit money has gone through the following development path: bill of exchange - accepted bill of exchange - banknote - check - electronic money - credit cards.

1.4 Functions of money

The economic essence and role of money is manifested in its functions. All functions of money are reflected in their standard definition: money is a means of payment for goods and services, a means of changing value, and also a means of storing value.

Money performs the following five functions: a measure of value, a medium of exchange, a means of payment, a means of storage and savings, and world money.

1. Measure of value. Money acts as a measure of value. Society finds it convenient to use a monetary unit as a scale for measuring the relative values of various goods and resources. Thanks to the monetary system, we do not have to express the price of each product in terms of all the other products for which it could be exchanged; we should not express the cost of meat in terms of grain, pencils, cigarettes, cars, etc. Using money as a common denominator means that the price of any product need only be expressed in terms of a monetary unit. This use of money allows parties to a transaction to easily compare the relative values of different goods and resources. Such comparisons make it easier to make rational decisions. As a measure of value, money is also used in transactions with future payments. Some difficulties in determining prices arise in connection with the transition from the use of money, which has its own value, to the use of banknotes that cannot be exchanged for gold. When using full-fledged money, their gold content is usually fixed, which makes it possible to have such a value as a price scale.

- Price scale– weight content of gold in a monetary unit. Prices are linked to the price scale. The government of any country can change the previously established price scale. This change is called currency reform.

- Currency reform- a transition from one measure of value to another, accompanied by a decrease in the total amount of money.

2. Means of payment. Money acts as a means of payment. This function of money manifests itself, first of all, in servicing payments outside the sphere of trade turnover (taxes, social benefits, interest on loans). Money is easily accepted as a means of payment. This is a convenient social invention that allows resource owners and producers to be paid with a “commodity” (money) that can be used to purchase any of the entire range of goods and services available in the market.

Participating as a means of payment are: cash, And non-cash money. Cash – between individuals, non-cash – in the main turnover.

3. Medium of exchange. Money acts as a means of circulation and maintenance of trade turnover. First of all, money today is a medium of exchange; money can be used in the purchase and sale of goods and services. As a medium of exchange, money allows society to avoid the inconveniences of barter exchange. By providing a convenient way to exchange goods, money allows society to benefit from geographic specialization and the division of labor among people.

Of great importance velocity of money: the faster the turnover occurs, the less money is needed to circulate the goods. When money performs the function of a medium of exchange, it is important that the volume of effective demand corresponds to the supply of goods. Supplying circulation with the necessary mass of banknotes becomes of great importance.

4. A means of accumulation (savings). Money that is not involved in circulation forms monetary savings. This is cash held by citizens, as well as balances in bank accounts. People can store their wealth in the form of jewelry, art, houses, stocks and bonds, and many other forms. However, money is more suitable for this function because it is inherently liquid.

- Liquidity– the ability to use the asset as a means of payment, and the ability of the asset to maintain its nominal value unchanged.

Money by definition has perfect liquidity. They can be used as a means of payment, and since they function as a measure of value, they do not change their own nominal value in terms of the price scale. All other types of assets have liquidity only to a greater or lesser extent.

Owning money, with rare exceptions, does not generate monetary income, which is derived from storing wealth, for example, in the form of real estate (property) or securities (stocks, bonds, etc.). However, money has the advantage that it can be used immediately by a firm or household for any financial obligation.

5. World money. The function of “world money” is money in the system of international economic relations. They function as a universal means of payment, a universal means of purchase and a universal materialization of social wealth. The world money was gold as a means of regulating the balance of payments and the credit money of individual states, exchanged for gold: mainly the US dollar and the British pound sterling.

Since the forties of the twentieth century, the world community has been looking for a replacement for the dollar just like any other national currency.

In order to ease international liquidity problems, the International Monetary Fund introduced special drawing rights(SDR). The SDR unit price was determined based on the weighted average rate of the five leading currencies.

For countries participating in the European Monetary System, since March 1979, ECU– paperless monetary units in the form of entries in accounts in the central banks of member countries. The value of the ECU was determined based on the weighted average exchange rate of the 12 member countries. To determine the share of a particular currency in the ECU, the GNP (domestic national product) of the participating countries was compared.

Currently, EU countries make payments in a new currency - Euro .

2. Financing of enterprises of various forms of ownership: joint-stock companies; budgetary enterprises; insurance companies

The basis of market relations is money. They connect the interests of the seller and the buyer. The buyer pays money to the seller, and then expects to sell the results of his work and receive money for it. He gives part of it to the bank to repay the loan and to budgets of various levels in the form of taxes, and uses the rest for his own needs. Market relations are, first of all, financial relations, when participants in market relations expect to earn money and use it for various purposes, creating their own appropriate monetary funds.

Enterprise finance is economic, monetary relations arising as a result of the movement of money: on their basis, various monetary funds operate at enterprises.

Financial relations of enterprises consist of four groups. These are the relationships:

With other enterprises and organizations;

Inside the enterprise;

Within associations, enterprises that include relationships with a parent organization; within financial and industrial groups, as well as holding companies;

With the financial and credit system - budgets and extra-budgetary funds, banks, insurance, exchanges, various funds.

Financial relations with other enterprises and organizations include relations with suppliers, buyers, construction, installation and transport organizations, post and telegraph, foreign trade and other organizations, customs, enterprises, organizations and firms of foreign countries.

The largest group in terms of the volume of cash payments is the relationship of enterprises with each other related to the sale of finished products and the acquisition of material assets for economic activity. The role of this group of financial relations is primary, since it is in the sphere of material production that national income is created, enterprises receive revenue from the sale of products and profit. The organization of these relationships has a direct impact on the final results of production activities.

Financial relations within an enterprise include relations between branches, workshops, departments, teams, etc., as well as relations with workers and employees. Relations between divisions of the enterprise are associated with payment for work and services, distribution of profits, working capital, etc. Their role is to establish certain incentives and financial responsibility for the high-quality fulfillment of accepted obligations. Relations with workers and employees include the payment of wages, bonuses, benefits, dividends on shares, financial assistance, as well as the collection of money for damage caused and the withholding of taxes. At the same time, it is very important that employees of enterprise departments receive exactly what they earn.

Financial relations of enterprises with higher organizations include relations regarding the formation and use of centralized funds, which in conditions of market relations are an objective necessity. This is especially true for financing investments, replenishing working capital, financing import operations, scientific research, including marketing. Intra-industry redistribution of funds, as a rule, on a repayable basis, plays an important role and contributes to the optimization of enterprise funds.

In the conditions of property privatization, when a significant part of the shares of privatized enterprises remains in the hands of the state, the following international experience plays a large role: in many countries the main share (up to 90%) of funds from privatization goes to special funds to support privatized enterprises. Financial and industrial groups are created, as a rule, with the aim of combining financial efforts in the direction of developing and supporting production and obtaining maximum financial results. There may be centralized monetary funds, commercial loans to each other, or simply financial assistance. The same applies to the relationship between enterprises and holding conditions.

Relations with the financial and credit system are diverse.

First of all, these are relations with budgets of various levels and extra-budgetary funds associated with the transfer of taxes and deductions. The Russian tax system is imperfect and does not contribute to normal production activities. World experience shows that it is possible to reduce high inflation rates only through supporting production and developing investment. Tax, as well as credit and customs policies should be aimed mainly at this. In particular, in many countries some or all of the increase in production is not subject to taxes. This is beneficial for both enterprises and the state, since taxes from such enterprises are received in full, and after a year they increase sharply.

Relations with the insurance sector of the financial system consist of transfers of funds for social and health insurance, as well as insurance of enterprise property.

Financial relations of enterprises with banks are built both in terms of organizing non-cash payments and in relation to obtaining and repaying short-term and long-term loans. The organization of non-cash payments has a direct impact on the financial position of enterprises. Credit is a source of formation of working capital, expansion of production, its rhythm, improvement of product quality, and helps eliminate temporary financial difficulties of enterprises.

Banks currently provide enterprises with a number of so-called non-traditional services: leasing, factoring, forfeiting, trust. At the same time, there may be independent companies specializing in performing these functions, with which they have direct relationships, bypassing the bank.

Currently, there are a number of serious problems in the relations of enterprises with banks. The practice of non-cash payments is primitive: prepayment, barter, cash, non-payment. Credit is very expensive, so its share in the formation of working capital of enterprises is very low (on average no more than 10%). Long-term loans for financing investments are practically not used. Non-traditional banking services have also not received serious development.

Financial relations of enterprises with the stock market involve transactions with securities. The stock market in Russia is not yet sufficiently developed.

The most important aspect of the financial activity of enterprises is the formation and use of various funds. Through them, economic activity is provided with the necessary funds, as well as expanded reproduction; financing of scientific and technological progress; foundation and introduction of new technology; economic incentives; settlements with the budget, banks.

Such funds include the following:

When organizing an enterprise, it must have an authorized fund, or authorized capital, through which fixed assets and working capital are formed. Organization of authorized capital, its effective use and management is one of the main and most important tasks of the financial service of an enterprise. Authorized capital is the main source of the enterprise's own funds. The amount of the authorized capital of a joint-stock company reflects the amount of shares issued by it, and of a state and municipal enterprise - the amount of the authorized capital. The authorized capital is changed by the enterprise, as a rule, based on the results of its work for the year after amendments were made to the constituent documents. You can increase (decrease) the authorized capital by issuing additional shares (or withdrawing a certain number of them from circulation), as well as by increasing (decreasing) the par value of old shares.

The cash fund of an enterprise (“additional capital”) includes:

Results of revaluation of fixed assets, i.e. their revaluation;

Share premium of a joint stock company (income from the sale of shares in excess of their nominal value);

Monetary and material assets received free of charge for production purposes;

Budget allocations for financing capital investments;

Funds for replenishing working capital.

Reserve capital is the cash fund of an enterprise, formed through deductions from profits. Designed to cover losses, and in a joint-stock company also to repay the company’s bonds and repurchase its shares.

The accumulation fund is funds allocated from the net profit of the enterprise and directed to the development of production. Naturally, net profit alone is not always enough to finance a production development program. In this case, the enterprise forms an investment fund that concentrates all funds allocated for the development of production, including net profit, and a depreciation fund intended for the simple reproduction of fixed assets, as well as attracted and borrowed sources.

In a joint-stock company there is the concept of “share capital”, which means the amount of the company’s assets minus its debts. Thus, the share capital is practically the sum of the fixed assets of the joint-stock company, which includes all of the above funds (with the exception of the investment fund), as well as some others.

The consumption fund is created through deductions from net profit and is used to pay dividends (to joint stock companies), one-time incentives, financial assistance, to pay for additional vacations, meals, travel and other purposes.

The foreign exchange fund is formed by enterprises that receive foreign exchange earnings from export operations or purchase foreign currency for import operations. For these purposes, enterprises open a foreign currency account in a commercial bank licensed by the Central Bank of the Russian Federation to conduct foreign exchange transactions.

In addition to the permanent cash funds discussed above, enterprises periodically create operating cash funds.

Twice or once a month, the enterprise creates a fund for paying wages. Its basis is the wage fund.

To ensure timely payment of wages, enterprises solve a number of problems. For these purposes, the necessary funds are accumulated in the account, and in their absence, enterprises turn to the bank for a loan to pay wages. It is of no small importance to determine the optimal timing for payment of wages and the number of days required for this.

Typically, once a year (less often - once a quarter) a fund must be formed to pay dividends on shares to shareholders.

Periodically, the enterprise organizes a fund for payments to the budget of various taxes. Late payments to the budget by an enterprise entail penalties.

In addition to the above, a number of other funds of funds are created at the enterprise: to repay bank loans, develop new equipment, research work, and deductions from a higher organization.

Practical task

1. Analyze and draw up a loan agreement for an individual. Give an example with calculations.

Tsvetov Mikhail Ivanovich

Salary: for 6 months. – 104,772.82 rubles, average per month: 17,462.14 rubles.

Payment schedule for a consumer loan (in loan currency)

Payment date	Payment for the billing period	Balance of loan debt	Note
Payment amount	including
Interest	Repayment of basic loan amount	Commissions and other payments
10.02.09	1028,80	473,24	555,56	19444,44	48 days
10.03.09	824,05	268,49	555,56	18888,88	28 days
10.04.09	844,33	288,77	555,56	18333,32	31 days
10.05.09	826,79	271,23	555,56	17777,76	30 days
10.06.09	827,34	271,78	555,56	17222,20	31 days
10.07.09	810,35	254,79	555,56	16666,64	30 days
10.08.09	810,35	254,79	555,56	16111,08	31 days
10.09.09	801,86	246,30	555,56	15555,52	31 days
10.10.09	785,70	230,14	555,56	14999,96	30 days
10.11.09	784,87	229,31	555,56	14444,40	31 days
10.12.09	769,26	213,70	555,56	13888,84	30 days
10.01.10	767,89	212,33	555,56	13333,28	31 days
10.02.10	759,39	203,83	555,56	12777,72	31 days
10.03.10	732,00	176,44	555,56	12222,16	28 days
10.04.10	742,41	186,85	555,56	11666,60	31 days
10.05.10	728,16	172,60	555,56	11111,04	30 days
10.06.10	725,42	169,86	555,56	10555,48	31 days
10.07.10	711,72	156,16	555,56	9999,92	30 days
10.08.10	708,44	152,88	555,56	9444,36	31 days
10.09.10	699,94	144,38	555,56	8888,80	31 days
10.10.10	687,07	131,51	555,56	8333,24	30 days
10.11.10	682,96	127,40	555,56	7777,68	31 days
10.12.10	670,63	115,07	555,56	7222,12	30 days
10.01.11	665,97	110,41	555,56	6666,56	31 days
10.02.11	657,48	101,92	555,56	6111,00	31 days
10.03.11	639,94	84,38	555,56	5555,44	28 days
10.04.11	640,49	84,93	555,56	4999,88	31 days
10.05.11	629,53	73,97	555,56	4444,32	30 days
10.06.11	623,50	67,94	555,56	3888,76	31 days
10.07.11	613,09	57,53	555,56	3333,20	30 days
10.08.11	606,52	50,96	555,56	2777,64	31 days
10.09.11	598,02	42,46	555,56	2222,08	31 days
10.10.11	588,43	32,87	555,56	1666,52	30 days
10.11.11	581,04	25,48	555,56	1110,96	31 days
10.12.11	572,00	16,44	555,56	555,40	30 days
24.12.11	559,23	3,83	555,40	0,00	14 days
Total:	5704,97	25704,97

Here's the calculation:

First payment date: 02/10/2009

18% / 365 = 0.0493 20,000 rub./36 months. = 555.56 rub. (basic payment amount)

February: 48 days

0.0493*48=2.366 (% rate)

20,000 rub.*2.366%=473.24 rub. (% amount per loan)

555.56 rub.+473.24 rub.=1028.80 rub. (total payment amount)

20,000 rub.-555.56 rub.=19,444.44 rub. (amount of remaining debt)

March: 28 days

0.0493*28=1.3804 (% rate)

19444.44 rub.*1.3804%=268.49 rub. (% amount per loan)

555.56 rub.+268.49 rub.=824.05 rub. (total payment amount)

19444.44 rub.-555.56 rub.=18888.88 rub. (amount of remaining debt)

April: 31 days

0.0493*31=1.5283 (% rate)

18888.88 rub.*1.5283%=288.77 rub. (% amount per loan)

555.56 rub.+288.77 rub.=844.33 rub. (total payment amount)

18888.88 rub.-555.56 rub.=18333.32 rub. (amount of remaining debt)

May: 30 days

0.0493*30=1.479 (% rate)

RUB 18,333.32*1.479%=RUB 271.23 (% amount per loan)

555.56 RUR + 271.23 RUR = 826.79 RUR (total payment amount)

RUB 18,333.32 - RUB 555.56 = RUB 17,777.76 (amount of remaining debt)

Appendix 1: Bank agreement – 3 sheets. in 1 copy.

2. Make calculations to determine the creditworthiness, solvency and degree of possible bankruptcy in your company

The main criteria for assessing the financial position of enterprises include solvency. The financial condition of enterprises can be assessed from a short-term or long-term perspective. In this regard, there are long-term And current solvency. Long-term solvency is determined to assess the enterprise's ability to pay off its long-term obligations. Under current solvency or liquidity understand the ability of enterprises to fully pay off their short-term obligations. This is one of the most important characteristics of the stability of the financial position of an enterprise.

To assess solvency and liquidity, liquidity indicators of enterprise assets are used: absolute liquidity ratio, critical liquidity ratio(intermediate coverage ratio) and current ratio(coverage ratio). The differences between these ratios are due to the set of liquid funds used to cover short-term liabilities. The first coefficient is of relatively great interest for suppliers, the second for banks, and the third for shareholders.

Absolute liquidity ratio(quick liquidity ratio) shows what part of the short-term debt the company can, if necessary, repay in the near future, and reflects solvency as of the balance sheet date. It is the most stringent indicator of liquidity.

Cap=A1/P1+P2

At the beginning of the period:

Cap=1,072,000/0+1,353,000=0.79

At the end of the period:

P1=approximation to balance, f. №5=0

Critical liquidity ratio(crisis or intermediate liquidity ratio, adjusted liquidity ratio) assesses the solvency of enterprises, subject to timely settlements with debtors for the period of the average duration of one turnover of receivables.

It is defined as the ratio of the amount of receivables with a maturity of up to 1 year, cash and short-term financial investments to short-term liabilities (the total amount of short-term loans and borrowings and accounts payable).

Kpr=A1+A2/P1+P2

At the beginning of the period:

A1=str250+str260=0+1,072,000=1,072,000

A2=str240+str270=0+0=0

P1=approximation to balance, f. №5=0

P2=str610+str620+str630+str660=1,353,000+0+0+0=1,353,000

Kpr=1,072,000+0/0+1,353,000=0.79

At the end of the period:

A1=str250+str260=0+1,078,000=1,078,000

A2=str240+str270=0+0=0

P1=approximation to balance, f. №5=0

P2=str610+str620+str630+str660=1,355,000+0+57,000+0=1,412,000

Kpr=1,078,000+0/0+1,412,000=0.76

The ratio is considered acceptable if Kpr >=1, which indicates solvency within 2-4 weeks. According to other sources, the value of this indicator can be taken in the amount of 0.8 to 1. In our case, the KPR at both the beginning and the end of the period does not meet the standards.

Current ratio(overall liquidity ratio, coverage ratio, total coverage ratio) characterizes the solvency of the enterprise for the period of the average duration of one turnover of all current assets.

The ratio is calculated as the ratio of current assets to the amount of short-term liabilities (short-term borrowings, accounts payable, dividend payments and other short-term liabilities).

Kp=A1+A2+A3/P1+P2

At the beginning of the period:

A1=str250+str260=0+1,072,000=1,072,000

A2=str240+str270=0+0=0

P1=approximation to balance, f. №5=0

P2=str610+str620+str630+str660=1,353,000+0+0+0=1,353,000

Kp=1,072,000+0+4,000/0+1,353,000=0.79

At the end of the period:

A1=str250+str260=0+1,078,000=1,078,000

A2=str240+str270=0+0=0

A3=str210-str216+str220+str230+str140=0-0+4,000+0+0=4,000

P1=approximation to balance, f. №5=0

P2=str610+str620+str630+str660=1,355,000+0+57,000+0=1,412,000

Kp=1,078,000+0+4,000/0+1,412,000=0.76

A normally operating enterprise has Kp >=2, equity capital is growing, accounts receivable approximately correspond to accounts payable, there are no losses or overdue debts, the volume of inventories and costs does not exceed the minimum sources of their formation - own working capital, long-term loans and borrowings. A high KP may be associated with a slowdown in the turnover of funds invested in inventories, an unjustified increase in accounts receivable, while at the same time, a decrease in KP means an increasing risk of insolvency. In our case, Kp is significantly lower than the standard and decreased at the end of the period, which means the risk of insolvency.

To a group of enterprises with acceptable financial instability can be classified as enterprises in which the amount of cash, short-term financial investments, accounts receivable and other current assets plus inventories (i.e. current assets as a whole) is equal to or greater than the sum of short-term and long-term debt, accounts payable and other short-term liabilities together with outstanding on time loans.

TO on the verge of bankruptcy include insolvent enterprises. At enterprises in a crisis situation, the total value of current assets is less than the sum of funds for short-term and long-term debt, accounts payable and other short-term liabilities, together with loans outstanding on time.

The balance sheet structure is considered unsatisfactory and the company is considered insolvent if one of the following conditions is met:

1.Kp (coverage ratio) at the end of the reporting period< 2.

Kp at the end of the period =0.76

2.Koss (ratio of own working capital) less than 0.1.

Koss = equity capital - non-current assets / current assets

Koss=str490-str190/str290=82,000-336,000/1,193,000=-0.2

In this case, the indicators are less than the standards, which means that the balance sheet structure can be considered unsatisfactory and the company insolvent.

If at least one of these ratios is less than the standard, an analysis is carried out for potential bankruptcy.

An external sign of the insolvency (bankruptcy) of an enterprise is the suspension of its current payments: the enterprise does not provide, or is obviously incapable of, ensuring the fulfillment of creditors' claims within three months from the date they become due.

If the balance sheet structure is unsatisfactory, in order to check the real possibility of the enterprise to restore its solvency, the solvency restoration coefficient (Quosst) is calculated for a period of six months as follows:

Quosst=Kk+6/T(Kk-Kn)/2

where Kk, Kn - the actual value of the coverage ratio (Kp) at the end and beginning of the reporting period;

6 - period of restoration of solvency in months;

T - reporting period in months;

2 - standard value of the coverage coefficient (Kp).

If Kvoost< 1, то это свидетельствует о том, что у фирмы в ближайшие 6 месяцев нет реальной возможности восстановить платежеспособность.

If Quosst>1, then this means there is a real opportunity to restore solvency and allows you to postpone declaring the enterprise insolvent for 6 months.

If the balance sheet structure is satisfactory (Kp>2; Koos>0.1), to check the stability of the financial position, the coefficient of loss of solvency (Kutr) is calculated for a period of 3 months:

Kutr=Kk+3/T(Kk-Kn)/2

If Kutr>1, then this means that the company has a real opportunity not to lose solvency in the next 3 months.

If Coutre<1, то фирма в ближайшие 3 месяца может утратить свою платежеспособность.

The considered system for assessing potential bankruptcy is applied to state-owned enterprises and enterprises that have a share of state (municipal) property in their authorized capital.

Regardless of the form of ownership of the debtor enterprise, if it is unable to meet its current obligations, creditors may apply to the arbitration court with an application to declare the debtor enterprise insolvent (bankrupt). The formal condition for this is the debtor’s failure to fulfill his obligations after three months from the date of the deadline for fulfilling these obligations.

In accordance with the Law “On the Insolvency (Bankruptcy) of Enterprises,” reorganization, liquidation procedures, and settlement agreements are applied to the debtor.

Appendix 2: balance sheet of JSC Repka

Conclusion

Thus, the finances of enterprises of various forms of ownership are the basis of the country’s unified financial system. They serve the process of creation and distribution of social product and national income. This condition determines the degree of provision of centralized funds with financial resources. The enterprise operates profitably, stands firmly on its feet – and it’s good for the budget, since there is someone to collect taxes from. The enterprise is unprofitable, the products are not on the market, there is no money in the accounts - and the treasury is in trouble. What will you recover from the losses? Such an enterprise itself needs financial assistance.

Enterprise finance is part of the financial system, its link and characterizes monetary relations associated with the formation, distribution and use of monetary resources to fulfill their obligations to the state, other enterprises and firms, employees, etc. Money is one of the greatest inventions of mankind. They constitute the most unique aspect of economics. “Money puts a spell on people. Because of them they suffer, for them they work. People come up with the most ingenious ways to get it and spend it. Money is a fascinating, repeating, mask-changing riddle.”

Money is perhaps one of the most important elements of any economic system in making the economy work. If the current monetary system works well, then it infuses vitality into all stages of the production process, into the circulation of income. and costs, contributes to the full use of existing production capacity and labor resources. Conversely, if the functioning monetary system works poorly, intermittently, then this can become the main reason for a decrease or sharp fluctuations in the level of production, employment, rising prices and a decrease in household incomes.

References

1.Drobozina L.A., Finance. Money circulation. Credit: textbook. for universities. – M.: UNITY, 2000.

2. Kovaleva A.M., Finance: textbook. allowance. 2nd ed., - M.: Finance and Statistics, 1997.

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Finance, money circulation and credit

Money circulation is the movement of money when they perform their functions in cash and non-cash forms in connection with the sale of goods, with payment for services provided, with making various payments (payment of wages, payment of taxes, return and provision of credit, payment of interest, etc. .).

The basis for money circulation is the circulation of goods. In the process of circulation, money does not leave the sphere of circulation, but circulates again and again in accordance with its functions.

From the standpoint of historical evolution, two main groups are distinguished among money:

a) money that has value or material value;
b) money that has no material value, or inferior money.

The first type is the so-called commodity money, or natural (real) money. Such real money appears in the form of goods that historically acted or act as a universal equivalent. Commodity money has the ability to exist both as money and as an ordinary commodity. Therefore, the nominal value of such money corresponds to its real commodity value.

The second group consists of paper and credit money. Such symbolic money acts only as signs of value. When considering the functions of money, a tendency was recorded for commodity or gold money to die out and symbolic money to come to the fore. money coin credit bill

Modern symbolic money takes the form of real (cash) and immaterial (non-cash) money. Therefore, monetary circulation consists of cash and non-cash spheres.

Cash. Symbolic real money consists of cash and credit money (debt obligations or securities - bills, checks, etc.). Cash made from paper and base metals (bargaining coins) has a value significantly less than its face value. Such symbolic signs of value rely on the power of the state. Cash paper money circulation can be represented by treasury notes and banknotes of the country's central bank. At the same time, it must be admitted that at the moment the difference between banknotes and treasury notes has actually been lost.

The essence of non-cash payments. Non-cash money is non-cash money. Non-cash money turnover is the movement of value without the participation of cash, through the transfer of funds (digital symbols) to bank accounts. The modern system of non-cash payments operates through the mediation of special institutions (banks), whose activities, in turn, are controlled by the country’s central bank. At the country's central bank, private banks are required to open their correspondent accounts to store available funds - their own and borrowed. Using these essentially “monastic” or, as they are now commonly called, correspondent accounts, mutual settlements are carried out between private commercial banks, which in turn open current (settlement) accounts for clients and process their payments. Thus, the non-cash payment system presupposes a hierarchy of relations between the central bank, private banks and business entities. All business entities of all forms of ownership are required to keep their funds in bank accounts and comply with other requirements for cash flow.

Money, as you know, is a historical category. They appeared at a certain stage in the development of society. Therefore, when analyzing the types and forms of money, as a rule, the results of their evolution and differentiation of the content of public works performed by function are considered. At the same time, the classification of forms and types of money by various economists is interpreted ambiguously and appears debatable. A number of authors consider full-fledged (real money) as a classification feature of forms of money, which, in turn, are divided into the following types: gold and silver bars, gold and silver coins, precious stones and inferior money, which are divided into the following types: money substitutes (central bank notes, coins, treasury notes, funds on demand accounts in banks) and money surrogates (checks, bills, electronic money). A number of other authors, when classifying money, subdivide it according to its natural and functional characteristics and distinguish three main types of money: commodity money, full-fledged money, fiat money.

Within the type of money, monetary forms are distinguished. For example, the main forms of full-fledged money are bars, coins, and banknotes with full or partial coverage. Fiat money includes paper money, deposit money (bills of exchange, checks, plastic cards, etc.) and electronic money.

Some economists distinguish types of money according to different criteria. So, in the historical aspect, they distinguish between full-fledged metallic and inferior money. Depending on the form, there are cash (banknotes, coins and treasury notes) and non-cash money, which exists in the form of records in bank accounts (mainly in electronic form).

The modern interpretation of the concept of money excludes the commodity nature of money. Thus, the new economic encyclopedia gives the following definition of money: “Money is an instrument of economic relations in society, which is:

measure of value;

medium of exchange;

convenient form of savings;

a means of payment and acting in the form of world money.

In the process of replacing full-fledged money with paper banknotes, the problem arose of linking the total mass of such banknotes with the needs of circulation. The relevance of this problem was due to the fact that when banknotes are issued in circulation beyond the need for them, there is a threat of their depreciation, which does not happen when using gold money. Depending on the features of issue into circulation, banknotes made of paper are divided into:

paper money (treasury notes);

credit money (banknotes).

A billon coin is an inferior exchangeable metal coin, the face value of which exceeds the cost of the metal it contains and the cost of minting it. B. m. is a substitute for gold and, ultimately, a sign of value. Acting primarily in retail trade, banknotes perform only the functions of a medium of exchange and, to a limited extent, a means of payment. Since 1933, only coins have been put into circulation in all countries. They are minted from silver (of low standard), copper, nickel, aluminum and other metals. The minting of B.m., in contrast to the minting of a full-fledged coin, brings coin income to the state and is closed, i.e., it is made from metal that belongs to it. Release of B.m. limited by the needs of monetary circulation, and its distribution between coins of different denominations and the maximum wear period of the coin. established on the basis of practical experience. Release of B.m. strictly limited by the needs of cash flow. In Tsarist Russia, the release of B.m. was limited to the amount of 3 rubles. per capita. In the USSR, small change coins made of base metals are issued in denominations of 1 ruble, 50, 20, 15, 10, 5, 3, 2 and 1 kopeck.

Paper money (treasury notes). Treasury bills are paper money issued by the Treasury, i.e. government agency in charge of cash execution of the state budget. Their main feature is not that they are made on paper, but that their issuance by the state (usually the treasury) is usually determined by the need for funds to cover its expenses. The reverse influx of paper money (treasury notes) occurs when paying taxes and other payments, including for goods, works and services, etc.

The most important disadvantage of paper money is that it comes into circulation without the necessary connection with the needs for banknotes. In this regard, it becomes possible to release such money into circulation excessively (compared to the need for turnover), which is likely to depreciate the value of money and reduce its purchasing power. The disadvantages inherent in paper money can be largely eliminated through the use of credit money. The issuance of treasury notes is typical for underdeveloped countries. There are none in Russia.

Credit money is a form of money that arises in the conditions of the development of commodity production, when purchases and sales are carried out in installments (on credit). The emergence of credit money is associated with the function of money as a means of payment; they replace gold and paper money and are the basis of the modern payment and settlement mechanism. Domestic money circulation and international money circulation are based on credit money.

Credit money is a sign of value that arises and functions in circulation on the basis of credit. They, like full-fledged money, arose in the process of spontaneous development of market relations, when the mutual trust of market subjects reached such a level that one of the subjects dared to transfer a good or other value to the second under the obligation to pay in the future. Trade circulation itself gave birth to trade money in the form of a promissory note, which began to circulate as a means of circulation. Their appearance is also 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.

There are three main types of credit money: bill, banknote and check, which in circulation act as obligations, for example, of a central bank. These obligations, having the force of legal tender, are issued in two forms - cash and money in the accounts of commercial banks and other institutions at the central bank.

A bill is a written unconditional obligation of the debtor to pay a certain amount within a predetermined period in a specified place (simple, transferable, treasury, bank). Features are abstractness (the term of the transaction is not specified), indisputability (mandatory payment of the debt), and negotiability. It serves only wholesale trade, the balance of mutual claims is repaid in cash, and a limited number of persons are involved in bill circulation. It is limited by the size of the reserve fund of the creditor enterprise. There are:

1. Domiciled bill of exchange - a bill on which the place of payment is indicated other than the place of residence of the drawer;
2. Treasury bill - a short-term bill issued by the state to cover its expenses;
3. Commercial bill - a bill issued by the borrower to the lender when pledging goods;

Short-term bill - a bill payable on demand or within the shortest possible time.

A bill of exchange (draft) is a written document containing an unconditional order from the drawer to the payer to pay a certain amount of money at a certain time and at a certain place to the recipient or his order. The main difference between a bill of exchange and a simple one, which is essentially a promissory note, is that it is intended to transfer, move values from the disposal of one person to the disposal of another. To issue (trace) a bill of exchange means to undertake the obligation to guarantee acceptance and payment thereunder. Consequently, it is possible to trace to another only if the drawer (drawer) has at his disposal a value not less than the amount of the bill being traced. Unlike a simple bill of exchange, not two, but three persons are involved in a bill of exchange: the drawer (drawer), who issues the bill, the first purchaser (or bill holder), who receives along with the bill the right to demand payment on it, and the payer (drawee), to whom the bill holder offers make a payment.

The holder of the bill is the owner of the bill who has the right to receive the amount of money specified in it. The holder of the bill, designated as the recipient in the bill itself, is called the first holder of the bill (remitee). When transferring a bill, the legal holder of the bill is the person who bases his right on a continuous series of endorsements. The holder of the bill has the right to the bill itself; he is obliged to give it to the person who lost possession of the bill only if he acquired the bill in bad faith or, while acquiring it, committed gross negligence. The holder of the bill has the right to receive payment on the bill from the acceptor (drawer of the promissory note), as well as by way of recourse from all other responsible persons (endorsers, avalists). The holder of the bill also has a number of other rights (to protest, to file lawsuits, etc.) provided for by law.

Drawer (debtor) is a person who writes and issues a bill to repay the debt for payment of inventory, work or services to the bill holder (creditor).

Endorser is a person who transfers his rights under a bill to another person (endorser), as the first person indicates in the endorsement on the back of the bill. The endorser is responsible not only for the existence of the right, but also for its implementation.

Endorser is a person who accepts rights from the endorser of a bill.

Drawer is the drawer of a bill of exchange, the person who created and issued this bill of exchange.

Drawee is the payer of a bill of exchange, the person to whose address the order is given to pay the bill of exchange. The drawer (drawer) can appoint himself as drawee (payer). For example, a bank may issue a bill of exchange to itself.

An endorsement is an endorsement made on bills of exchange, checks, bills of lading and other securities for the purpose of transferring rights of claim under these documents or securing any other claims.

Aval is an inscription on a bill that endorses or guarantees the bill. Aval is expressed by the words “considered as aval”, “as a guarantor”, “as a guarantor”, etc. Aval is placed on the front side of the bill or on an additional sheet - allonge. The aval must necessarily contain the signature of the avalist.

Allonge is an additional sheet of paper attached to a bill of exchange, on which endorsements are made if they do not fit on the reverse side of the bill of exchange.

Acceptance is the response of the person to whom the offer is addressed about its acceptance. Acceptance - consent to payment. According to Russian law, acceptance must be complete and unconditional (acceptance of an offer on different terms is recognized as a new offer).

Commercial bill - issued against the security of goods and secured by funds that the drawer will receive from the sale of goods purchased using the bill. Commercial bills are based on an actual transaction for the purchase and sale of goods on credit. The buyer (drawer) has the opportunity to postpone the payment terms, and the seller can immediately receive part of the cost of the goods sold by discounting (selling) the bill from another person.

A financial bill is a bill whose payers are banks. In Russia it is called a bank bill. This bill is a debt obligation issued by a bank in order to attract temporarily available funds.

Discounting a bill is the transfer of a bill by the bill holder to the bank to receive the bill amount before the payment date. For discounting a bill, the bank charges a fee in the form of a percentage of the bill amount. This percentage is called the discount rate or discount interest or discount. In other words, bill discounting is the purchase of a bill by a bank at a price lower than the bill amount, with a discount.

Acceptance of a bill of exchange - a bill (bill) with an obligation to pay it upon presentation and upon the arrival of the stipulated period specified in this document, or having the consent of the bank to guarantee payment of the amount specified in it. An accepted bill is usually issued with an inscription such as “accepted”, “accepted”, “I undertake to pay” or simply the signature of the payer for its payment. The payer becomes the acceptor - the main debtor of the bill, responsible for its payment on time. In case of non-payment, the holder of the instrument has the right of direct action against the acceptor.

Valuation of bills is the acceptance by the bank of obligations to fully or partially pay the bill for one of the persons obligated under the bill.

Collection of money - receiving money on a bill of exchange.

A banknote is a ticket of the central state bank, which acts as a means of payment throughout the state. A banknote is synonymous with a banknote and has a certain value, which can be nominal or real. In some countries, the free circulation of other currencies is prohibited. Several states, on the contrary, do not have their own national banknotes and use foreign ones.

Urgency. A banknote is an indefinite means of payment, always has a certain value, which depends on the financial and economic situation, and is always accepted as a means of payment. The bill is a fixed-term obligation and is subject to repayment within the period specified in its text.

Warranty and security. The state is the guarantor of the central bank's debts; they are backed by the country's gold and foreign exchange reserves. The bill is covered only by the property of the debtor; it is the drawer who is responsible for repaying the amount of the debt.

Appealability. The banknote is valid throughout the entire state and, subject to certain conditions, can be converted into other currencies. A bill of exchange is valid only when presented to the debtor, but can act as a means of payment upon agreement of the parties.

Paper money, which arose as paper tokens (representatives) of gold and silver, endowed with a forced denomination, over time ceased to be exchanged for metal and gradually began to live up to its name, turning into pieces of paper, supported only by the imperious power of the state with the exchange rate it sets.

Banknote (bank note) - banknotes issued for circulation and guaranteed by central (issuing) banks. Currently they are the main type of paper money. That is, a banknote is 50, 100, 500, 1000, 5000 rubles in pieces of paper.

A check is a security document containing an unconditional order from the drawer to the bank to pay the amount specified in it to the check holder. The drawer is a person who has funds in the bank, which he has the right to dispose of by issuing checks, the check holder is the person in whose favor the check was issued, the payer is the bank in which the drawer's funds are located.

Checks can be used to receive cash, to make non-cash payments, and checks can be used to pay for goods and services. In accordance with this, settlement checks are distinguished from the total mass of checks, intended exclusively for making non-cash payments by debiting from one account and recording to another.

Because a check is a private promissory note and has a specific expiration date. As a rule, they are: in domestic circulation - 10 days; internationally - 20-70 days.

A check is a document of the established form containing an unconditional order from the drawer to the bank to pay the amount specified in it to the check holder.

Depending on the nature of ownership and use, a distinction is made between registered, order and bearer checks. A registered check is issued to a specific person with the clause “not to order”; such a check cannot continue to circulate or pass from hand to hand by endorsement. In Russian practice, all checks used to receive cash are registered.

An order check is issued to a specific person with or without the clause “to order”, i.e. it can be circulated, transferred by the holder under endorsement by another person. A bearer's check is issued to the bearer or without specifying the holder of the check and is circulated by simple delivery. If an order check contains a blank endorsement, then the check is also circulated by delivery, without making an endorsement.

Electronic money is monetary units of a certain quantity and a certain currency, which are stored and transmitted using electronic media. The main such means are plastic cards with a chip, which serve ATMs and cash terminals.

Electronic money is a system through which Monetary obligations are transferred.

The law of monetary circulation shows how much cash is needed for the country's economy.

Law according to K. Marx: “The sum of prices for goods, works or services sold minus the sum of prices for goods, works or services sold by installments, the payment period for which has not yet arrived, plus the sum of prices for goods sold, paid from previous periods, minus mutual payments."

The money supply is influenced by two factors:

1) the amount of money, which is determined by the state issuing money and its legislative power;
2) the speed of circulation of money, the effect is inversely proportional to the amount of money in circulation. It is determined by the amount of turnover of the ruble that it will make in the process of performing the functions of circulation and payment for a certain period of time.

The amount of money in circulation (money supply) must correspond to the growth of the national product and the velocity of circulation of money.

Money supply is the totality of cash in circulation and non-cash balances in accounts held by individuals, legal entities and the state.

To analyze the state of money circulation, in addition to the money supply indicator, it is necessary to use indicators of the velocity of money circulation. The velocity of circulation of money characterizes the intensity of the movement of money as a medium of circulation and a means of payment, i.e. shows the number of transactions that each monetary unit handles during the year.

The monetary base is the sum of cash and commercial bank funds deposited with the Central Bank as required reserves. With the help of this money, the Central Bank fulfills its obligations to commercial banks and government agencies.

The main regulatory body in the field of monetary circulation in the Russian Federation is the Central Bank of Russia. In accordance with current legislation, he is entrusted with the responsibilities for implementing, developing and carrying out the state's monetary policy, issuing money, maintaining the stability of the ruble and its purchasing power, and organizing money circulation. The Central Bank of Russia establishes the total volume and structure of the money supply necessary for the normal functioning of the economy, determines the rules for the movement of non-cash money, as well as the procedure for transportation, storage, and collection of cash banknotes. The Bank of Russia is also entrusted with control and supervisory powers in the field of monetary circulation.

List of used literature

1. Constitution of the Russian Federation, //www.consultant.ru
2. Belousovs. Financial control in the public sector // “The Economist”. 2007 No. 4.
3. Tedeev A.A., Parygina V.A. “Financial Law” // M., 2004. Issues of Economics. 2005 No. 3.
4. Law of the Russian Federation No. 151-FZ “On the tax authorities of the Russian Federation” dated July 8, 1999 (as amended), //www.consultant.ru
5. Regulations on the Ministry of Finance of the Russian Federation, //www.consultant.ru6. Regulations on the Federal Treasury of the Russian Federation, //www.consultant.ru
6. Money, credit, banks / Ed. HE. Lavrushina, M.: Finance and Statistics, 1998.
7. Dolan E.J. and others. Money, banking and monetary policy - M.: New time, 1998
8. Handbook for a financier /Under. Ed. V.G. Pansky. - M.: Higher School, 1995.
9. General theory of money and credit / Ed. E.F. Zhukova - M.: UNITI, 1995.
10. General theory of finance: Textbook for universities. /Under. Ed. L.A. Drobozina. - M.: Finance and Statistics, 1995.
11. Finance / Ed. L.A. Drobozina. - M.: ICC “Marketing”, 1999.
12. Budget Code of the Russian Federation of July 31, 1998 N 145-FZ (as amended on July 24, 2007) Adopted by the State Duma on July 17, 1998. Approved by the Federation Council on July 17, 1998.

Finance money circulation and credit Cossack. Finance, money circulation and credit (6) - Abstract

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