Forms of money. What types of money are there? What can money be like?

Types of money

Money is a kind of special commodity that serves as a universal equivalent and has two main qualities. They can be exchanged for any product and they can influence its value. With their help, the value of commodity resources is determined. In the modern world there are many different types of money. Let's take a closer look at them.

Existing types

All money can be divided into two main groups: full-fledged and inferior. Those whose cost is equal to the cost of their production are called full-fledged. In turn, they are divided into commodity and metal.

Money that is worth more than the cost of expenses is called inferior money. They are also divided into two types: credit and paper.

In addition to these main groups, money can be divided into:

1. Metal.
2. Paper.
3. Credit.
4. Electronic payments.

Now we will try to learn about each species separately.

Coins or metal money

Coins can be copper, silver or gold. They are real money, since their nominal value corresponds to the real price of the metal from which they are produced.

Metal money appeared in the 7th century BC. They were round in shape and their standards were guaranteed by state coinage. Since they did not deteriorate, the coins gained great popularity. Metallic money is still found in all regions of the planet, but in small concentrations. They were replaced by easier money - paper money.

The most common type of money is paper. They can be found in all corners of the earth, and only the state has the right to release them. Paper money that is issued only by the central bank of a country is called banknotes.

Paper money has no independent value, so it was provided by the state with a forced exchange rate. They perform two functions: firstly, they are a means of exchange, and secondly, they are a means of payment.

Credit money

This money is generated when the purchase and sale process takes place on credit. They are an obligation that must be repaid on time with real money.

At the moment they can be divided into:

1. Bill of exchange. This is a written obligation that stipulates when, where and how much the debtor must pay. Today there are treasury bills, friendly bills, commercial bills and bank bills.
2. Check. This is a kind of document that indicates the amount transferred by order from the account owner to the bearer of the check. They are used to get cash from the bank.
3. . They appeared thanks to scientific and technological progress and the development of computer technology. Every day this type of money is gaining more and more popularity due to its ease of use. This money has many similarities with cash. They have the same monetary unit, so one can transform into another.
4. Credit cards. These cards contain credit money. They are widespread today and are widely accepted as payment. The only thing is that they have psychological traps that people fall into every day. After all, you can take as much money as you want from your account, but you may not be able to pay it back afterwards. There are a number of rules that will help you quickly repay your loan, read.

Electronic payments

When considering what types of money exist in our time, electronic payments cannot be missed.

Most compatriots already have electronic wallets. Using electronic money, you can pay for satellite television, utility bills, Internet, mobile communications and much more. And almost all of these payments can be made online, without leaving your home. Another advantage of electronic money is that transfers between individuals are possible at any time of the day with a minimum commission.

Money in the past

We looked at what kind of money exists now, but it’s always interesting to know the background. What kind of money did people pay in the past?

At a time when money was just beginning to gain momentum, its function was performed by some goods. It was possible to exchange products for products and vice versa. Animal skins, shells, pearls and much more were used as means of payment. The only disadvantage of such money was that there is too much of it in nature. This drawback was eliminated by coins that appeared over time. They can also be classified as commodity money, since it is possible to transfer them into jewelry.

Commodity money has not become obsolete to this day. For example, in places of deprivation of liberty, cigarettes are sometimes used as a means of payment, and in pioneer camps it is chewing gum.

So, we looked at the money that existed in the past and now. Everything changes every day, so the method of calculation does not stand still.

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

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

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

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

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

Stage 2 - assigning a universal equivalent to gold.

Stage 3 - transition to paper or credit money;

Stage 4 - gradual displacement of cash from circulation.

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

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

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

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

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

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

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

In the form of general direct exchangeability - money can be exchanged for other goods;

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

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

2. Functions of money

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

Measure of value - in this function, money in circulation is called the weight quantity of money; it measures the value of all goods as quantities of the same name, qualitatively identical and quantitatively comparable, since all goods as values ​​represent materialized labor and labor time costs. Value expressed in money is a price that is expressed in a certain quantity of a monetary commodity - gold.

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

For price comparison goods of different prices must be reduced to the same scale. The scale of metal prices is accepted in a given country as a monetary unit and serves to measure the price of all other goods.

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

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

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

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

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

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

3. Types of money.

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

· real money, having real value;

· signs of value that have no real value.

TO real money relate:

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

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

TO signs of value relate:

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

2) paper money is money issued by the Treasury at the request of the Russian government to cover budget expenses. Their release is not determined by the needs of trade turnover and therefore leads to inflation. This money is not backed by anything and there is no mechanism for withdrawing it from circulation. Therefore, they are constantly depreciating, especially as confidence in the Government declines. Paper money takes the form of treasury notes.

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

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

Cash is money that has a visible form.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Nullification - declaration by the state of depreciated banknotes as invalid.

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

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

Shock therapy methods - were widely used in international practice during the transition from state to market economies. During “shock therapy,” such harsh measures as freezing wages, reducing production, increasing unemployment, etc. are used.

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

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

2. MONEY CIRCULATION AND MONETARY SYSTEM

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

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

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

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

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

· remuneration by enterprises;

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

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

· payment for securities and payment of income on them;

· payments for utilities and housing services;

· payment of taxes to the budget by the population.

Non-cash turnover serves settlements carried out between:

· legal entities of different forms of ownership;

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

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

· banks and various financial institutions and the population.

That. money all the time move from one sphere to another: cash, when deposited into accounts at credit institutions, becomes non-cash, and when withdrawn from the account, it again becomes cash.

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

Stage 1: includes the preparation by credit institutions of forecast calculations of expected receipts of cash at cash desks and their issuance based on time series and the “Report on Cash Turnovers of Bank of Russia Institutions” or on the basis of basic applications received from serviced enterprises. The forecast is compiled quarterly, distributed by month, and sent to a correspondent account with the Bank of Russia two weeks before the forecast quarter.

Stage 2: Having received the forecast, the Central Bank of the Russian Federation, quarterly with a distribution by month, prepares forecasts of cash turnover in terms of income, expenses and emission results for the credit institutions served based on an analysis of the turnover of cash passing through their cash desks, and a week before the start of the quarter sends them to the territorial offices of the Bank of Russia, settlement the cash desks of which use them when drawing up applications to reinforce the working cash register.

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

Table 2.1

Cash turnover forecast

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

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

Non-cash turnover is usually divided into two types:

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

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

Modern non-cash turnover in the Russian Federation is organized in accordance with several basic principles:

1. Enterprises of all forms of ownership are required to keep their funds in bank accounts. Business cash registers are only allowed to hold small amounts of cash within the limit.

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

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

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

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

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

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

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

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

Collection order - a settlement document drawn up by a bank or enterprise when they are granted the right to indisputably write off funds.

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

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

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

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

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

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

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

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

3) speed of money circulation (inverse relationship).

This relationship was first established by K. Marx.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

S 3 - amount of payments on obligations;

P - mutually extinguishing payments.

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

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

Money supply is the most important quantitative indicator of money circulation and represents the total volume of purchasing and payment instruments serving economic turnover. The amount of fiat credit money should be determined by the value of all valuables in the country through money capital.

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

Table 2.2

Structure of monetary aggregates in the Russian Federation

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

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

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

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

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

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

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

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

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

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

3. The country's monetary system

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

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

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

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

Bimetallism - a monetary system in which the role of universal equivalent is assigned to two metals (silver and gold). Free coinage and unlimited circulation are provided for. There were two price scales for goods on the market. This system does not ensure the stability of monetary circulation, since a change in the value of one of the monetary metals leads to fluctuations in the prices of goods.

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

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

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

There are three types of gold monometallism:

Gold coin;

Gold bullion;

Gold exchange standards.

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

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

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

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

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

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

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

· budget- is the issue of paper money carried out by the Treasury at the request of the government of the country to cover budget expenses. The issue of money is not determined by the needs of trade turnover and therefore leads to inflation. This money is not backed by anything and there is no mechanism for withdrawing it from circulation. Therefore, they are constantly depreciating, especially as confidence in the Government declines. Paper money takes the form of treasury notes.

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

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

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

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

The central bank issues banknotes in three ways:

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

· lending to the treasury secured by government securities;

· issuing banknotes by exchanging them for foreign currency.

In many industrialized countries under the influence of increasing inflation and the growing crisis in the economy, targeting has become widespread - the establishment of targets in order to regulate the increase in the money supply in circulation and credit, which should guide central banks. The Central Bank, in agreement with government agencies, determines the amount of increase in the money supply, limiting it to growth in real terms.

This measure is being considered as an important form of combating inflation and ensuring economic stability. In the USA, all four monetary aggregates (Ml, M2, M3, M4) are targeted, but in France only M2. However, this form of regulation has shown poor effectiveness and a number of countries have abandoned targeting (Canada, Japan).

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

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

Exclusive right The Central Bank of the Russian Federation is responsible for issuing cash, organizing its circulation and withdrawal on the territory of the Russian Federation. He is responsible for the state of monetary circulation in order to maintain normal economic activity in the country.

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

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

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

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

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

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

Organization and regulation of non-cash payments;

Licensing of settlement systems of credit institutions.

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

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

3. FINANCE AND FINANCIAL SYSTEM

1. The essence and functions of finance

The term "finance"(from Latin Financia - income, cash) first began to be used in the 13th - 15th centuries in the trading cities of Italy. Subsequently, the term “finance” gained international distribution and began to be used as a concept associated with the system of monetary relations between the population and the state regarding the formation of funds of funds.

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

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

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

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

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

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

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

The essence of finance as an economic category is manifested in the functions it performs.

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

Financial method distribution covers different levels of economic management: federal, regional and local. It is characterized by a multi-stage nature, giving rise to different types of distribution - intra-farm, intra-industry, inter-industry, inter-territorial, interstate. Through finance, the state influences not only the redistribution of national income between the production and non-production spheres and within these spheres, but also on production, capital accumulation, and the sphere of consumption.

In general, the distribution function of finance allows:

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

· strengthen the state;

· develop the productive forces of society;

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

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

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

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

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

2. Financial system and its links

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

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

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

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

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

· state budget system;

· off-budget special funds;

· state loan;

· insurance funds;

· finance of enterprises of various forms of ownership.

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

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

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

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

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

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

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

4. PUBLIC FINANCE

1. State budget and taxes

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

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

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

From a legal point of view budget- this is a document that takes the form of a law, a legal act, on the basis of which funds of funds are formed and spent to perform national functions, the functions of constituent entities of the Russian Federation and local governments.

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

The state budget performs the following functions:

· Redistribution of national income;

· State regulation and stimulation of the economy;

· Financial support for social policy;

· Control over the formation and use of a centralized fund of funds.

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

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

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

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

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

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

II budgets of the constituent entities of the Russian Federation and budgets of territorial state extra-budgetary funds;

III - local budgets.

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

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

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

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

Budget formation is based on government revenues.

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

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

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

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

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

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

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

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

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

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

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

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

The main areas of government spending include:

Social expenses - one of the most important types of expenses, including expenses for health care, education, social security, social insurance. Approximately 3/4 of their total volume is financed from budgetary and extra-budgetary funds. In recent years, the role of local finances in covering the costs of expanding social infrastructure and maintaining educational and health care institutions has increased significantly. Expenses tend to increase due to the development of scientific and technological progress. State social spending finances activities that ensure the reproduction of the labor force, the qualifications of workers, pays unemployment benefits, etc.

Foreign economic expenses are related to the fact that the state in one way or another helps the manufacturer to break into the market. These are direct subsidies to companies from the budget, tax exemptions for exporters, provision of credit to an exporter or importer on preferential terms, export insurance, etc. This group also includes government costs for the implementation of various international treaties, cultural, scientific and other ties.

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

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

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

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

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

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

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

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

2. State extra-budgetary funds

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

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

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

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

Providing social assistance and services to the population;

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

Impact on the production process;

Providing environmental protection measures.

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

Pension Fund funds are generated according to the Regulations on the Pension Fund of the Russian Federation at the expense of insurance contributions from employers; insurance premiums for workers; allocations from the federal budget; part of the funds received as a result of capitalization (investment in securities) of temporarily available funds; voluntary contributions from legal entities and bank loans. Employers' insurance contributions to the Pension Fund are included in the cost of production (work, services).

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

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

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

Money concept comes from the ancient Greek “donaka”, which means “copper coin”, which came into the Russian language through the Turkic languages ​​(tenge). It is believed that before the advent of money there was a direct exchange of goods, barter in its modern version. In ancient times, various tribes and peoples around the world used pearls, shells, various stones, livestock, furs, skins, salt bars, steel bars and ingots, scraps of metal, metal objects as money. In Assyria and Ancient Egypt, gold began to be used as money as early as 4,000 years ago. In the 7th century BC the first minted coins appeared. This type of money quickly spread because it was easy to store, move, weighed little and had a high cost. And in 910 AD the first paper money appeared in China. And (just!) seven centuries later, the first paper money appeared in Europe - in Sweden in 1661, and in Russia in 1769 (notes introduced by Catherine II). This is the short answer history of money.

In our time, money is a term in economic theory, meaning a special type of product that has maximum liquidity and is a universal measure of the value of other goods and services.

Cash concept is most often synonymous with the concept of money. From the point of view of the compilers of the Modern Economic Dictionary, cash is “money of the state, enterprises, population and other funds that are easily converted into money, accumulated in cash and non-cash form.” Simply put, cash is cash and non-cash money.

Functions of money.

Functions of money in economics are meant by the manifestations of money as an economic phenomenon.

1. Measure of value. Each product has its own price, the same measuring characteristic as length in geometry, mass in physics or duration in time. Currency unit(ruble, dollar, petrodollar) is the standard for measuring the cost of goods.
2. Means of circulation. In the circulation of goods and services, money acts as an intermediary. The important point of this function is liquidity. A seller at the market may not immediately exchange his chickens for compound feed, but after a while, because while there is enough feed and there is nowhere to store it, he will have to buy it again later. I would call this function somewhat more specifically - ease of use.
3. Instrument of payment. A function important when paying off a debt. If a product is purchased on credit, then this debt is reflected in money, and not in the quantity of the product, and a change in the price of the product does not affect the amount of debt. That is, you took a TV for one hundred dollars, pay one hundred dollars on time, even if the TV already costs eighty dollars.
4. A means of storage. This is a function of transferring purchasing power into the future. If you're raising chickens, you can't keep a few chickens a week and then expand the pen for those chickens. But you can save money. The negative point is the phenomenon of inflation.
5. World money. The function of money as a means of payment on an international scale. In this function, the most important concept is a freely convertible currency, that is, an adequate comparison of the price of money of one country with the price of money of another country.
6. Treasure forming tool. Treasure is not necessarily a pirate treasure, or the values ​​of the ancient Egyptian civilization in the pyramids. In economics, treasure is essentially the same as accumulation (see above as a means of accumulation), only without a specific purpose. That is, simply putting aside extra money “for a rainy day.”
7. Function of international money. An analogue of gold, silver and precious stones is now the money (currency) of some countries - the euro, dollar, pound sterling.

Types of money.

1. Commodity money(they are also real, natural, real or real money). A type of money, the role of which is a product that has its own value and utility: gold coins, pearls, shells, furs, stones, etc. Currently, commodity money is mainly used as a means of saving or collecting).
2. Secured money(they are also change or representative money). Money that is representative of specific commodity money. The ancient Sumerians had money in the form of clay figurines of sheep and goats, which could be exchanged for real sheep and goats. Banknotes and bills were originally also backed money and could be exchanged for corresponding gold and silver coins, but now bills are symbolic money.
3. Fiat money(symbolic, unreal, decreed, paper money). This type of money has no independent value, or its value is disproportionate to its face value: the cost, the cost of producing a hundred dollar banknote, is not worth one hundred dollars. An interesting fact is that in our time this type of money, the most unreliable and unsecured, is the most popular and widespread in the economic sphere of society.
4. Electronic money. This is the same fiat money, only used for electronic payment (via the Internet, electronic terminals, etc.), since it is physically impossible to transfer a hundred dollar bill from one computer to another, but electronically it is possible.
5. Credit money. Fundamentally, credit money is the right to claim debt in the future in the form of electronic, fiat, secured or commodity money. Thus, it is a debt formalized in a special way in the form of a certain security (for example, a bill, a receipt).

From myself, based on the definition of money, I can highlight two more type of funds:

• cash- a type of commodity, secured or fiat money that has a physical form (that is, a person can store it, carry it with him, give it, pay, etc.). It’s convenient to pay for something confidentially with cash, but it’s impossible to pay remotely;
• non-cash money- a type of funds in bank accounts that is used for payment by transferring money from one account to another. Sometimes non-cash money also refers to electronic and credit money. The emergence of non-cash money is primarily due to convenience. When buying an apartment, it is much more convenient to give the seller a document indicating that a million rubles from such and such an account now belong to him than to bring a whole suitcase with him. Another important factor in the emergence of non-cash money is security. The first non-cash transfers (in the form of checks and bills) were invented by the knights-financiers of the Templar Order in the 11th-12th centuries in order to protect themselves from robbers on the roads.

Parameter name	Meaning
Article topic:	Types of money
Rubric (thematic category)	Finance

1. Commodity money (coins)- money used as a medium of exchange, and also sold and bought as an ordinary commodity.
Posted on ref.rf
Coins - ϶ᴛᴏ ingot of metal of a special shape, weight, standard. The denominations of the coins are certified by the state.

A) full-fledged– gold and silver coins;

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

b) inferior coins;

To bad money refers to such money, the purchasing power of which exceeds the internal value of the goods that act as the bearer of monetary relations. The purchasing power of this money is determined solely by market conditions, and the intrinsic value of inferior money has no effect on it. Defective money includes all types of post-gold money - paper and credit money.

2. paper money - they are means of payment whose value exceeds their value in alternative uses. They are representatives of gold, replacing it in circulation. Paper money has no intrinsic value, they are signs of gold, introduced by the state authority, which gives them a forced exchange rate. This compulsory course is valid only within the boundaries of a given state. The real value represented by paper money does not depend on state power and is determined by the objective laws of monetary circulation. Paper money will circulate at the value of the gold money it replaces if there is as much of it issued as is extremely important gold money in accordance with the law of paper money. If the issue of paper money exceeds the needs of trade turnover in gold money, then it depreciates. There is a rise in prices.

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

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

Consequently, modern paper money performs the function of money not because it is itself a commodity or backed by gold, but because the state has assigned it to this role. From the standpoint of the above criterion, money is divided into commodity and decreed. Money that has its own intrinsic value is called commodity money. Modern money, which has no internal value, and its value is determined externally, is called decreed.

3. credit money- means of exchange, which represent the obligations of a private individual or company. Funds that replace money. Such funds include checks, bills of exchange, credit cards. Οʜᴎ are used in calculations, but on the condition that each of them has either bank accounts or cash.

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

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

A bill of exchange can begin to move independently if it is transferred from one owner to another by means of a special endorsement - endorsement. The bill can be transferred to the bank, having received (with a certain discount) the debt before the period indicated on the bill. In case of refusal to pay, the owner of the bill files a lawsuit and the amount specified in the bill is collected in court from the person who issued the bill.

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

4. Bank accounts (or deposit money)- this is a unique means of displaying and monitoring the status and movement of funds (deposits) of the owner of the money who transferred them to the bank. Accounts are divided into permanent and fixed-term. The owner can receive funds from a perpetual account (demand account, current account) at any time. Term accounts become available to depositors, that is, they can receive money from them only after a certain time.

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

There are several technologies that ensure the functioning of electronic money. The "automated settlement fee" technology is a network of banks connected by one computer center. Automated cashier technology helps to perform the following operations without human intervention: receiving cash, making deposits, transferring money from one account to another.

Shapes of money

The forms of money are associated with the function of money as a means of circulation. There are two main forms of money:

1. cash– paper tokens and change coins;

2. non-cash money. Non-cash money has its own specifics.

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

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

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

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

- Types of money

Basic properties of monetary material The material or product from which money is made usually has a number of properties: qualitative homogeneity (individual copies of the product, coins, banknotes should not have unique properties); divisibility and...

- Types of money in modern economics

“Money” is just a general name for special items used by humanity to facilitate trade and solve other economic problems.

In reality, when carrying out one or another monetary transaction, we use one of the types of money: metal coins or paper... .

- Forms and types of money.

The role of money 1) resolving the contradiction between the consumer and exchange value of goods and creating the sphere of money circulation 2) forming credit relations 3) creating funds of funds for the accumulation and redistribution of monetary resources, i.e. Creation... .

- Types of money.

In its development, money came in two forms: full-fledged money and signs of value (substitutes of full-fledged money or inferior money).

Full-value money is money whose nominal value (indicated on it) corresponds to its real value, i.e. cost...

The emergence, essence, functions and evolution of finance.

References 1. A.V. Mogilev, N.I. Park, E.K. Hoenner Informatics: - M., 1999; 816 pp.

2. Chastikov A.P. Journal "Informatics and Education", 1996. 3. Guter R.S., Polunov Yu.L. From the abacus to the computer. - M.: Knowledge,... .

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

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

From the point of view of the ancient sages, representatives of Feng Shui (the science of energy), money is energy of colossal power. It can be attracted and repelled. Accordingly, get richer or get poorer. More often than not, this happens unconsciously. Really, who would want to voluntarily become poorer? We’ll tell you later how to attract the energy of money.

There is also such a definition of money as evil or dirt. “Money is evil”, “Money doesn’t buy happiness” - such well-known sayings convince people to be wary of wealth. This makes some sense. Money may well be evil. But not on their own. Evil and dirty intentions can be how to use this money or how to get money, for example, to steal. Money doesn't bring happiness, but it does improve the quality of life. When you have a lot of money, you can afford better treatment, vacations, clothes, cars, etc.

Functions of money and its role in society

As society developed, the role of money in it became more complex. In the modern world, this is part of economic relations, without which we cannot exist in the form we are familiar with. If we remove money from our lives, humanity will return in its development to several centuries ago. Without money, many professions will disappear, since people will be forced to engage only in activities that will help them feed themselves and not die of hunger.

Now money performs many functions:

1 Means of payment. With the help of money, you can pay for goods both immediately and later by borrowing them. The amount of debt is expressed in monetary units.

2 Evaluation of people's work. Rare specialists are valued the most. Work that can be done by many is rated lower.

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

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

5 Intermediary in the circulation of goods. With the advent of money, everything became easier and faster, because money is a universal commodity that can be exchanged for anything. In the era of natural exchange, it was necessary to look for a suitable product in the markets, even to make a double or triple transaction in order to exchange one product for another. Now you can sell, for example, grain even to another country, receiving money on the same day, or even prepayment - through a bank to the organization’s account. And then immediately use this money to pay for the purchase of combine harvesters in another city, transferring the funds to the account of the manufacturing plant.

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

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

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

History of money

No one knows for sure when money was created. But it is believed that approximately 2-3 thousand years BC. a semblance of a generally accepted equivalent appeared in the exchange of goods. At first there was simply a natural exchange: a goat for a cow, a tool for meat and skins. But very soon this scheme ceased to seem mutually beneficial and fair. It was necessary to come up with a universal intermediary product for exchange, which could be easily exchanged for other goods due to the high demand for it.

And “money” appeared. Different nations had their own. In Germany, for example, cattle were used as money, in Mongolia - tea, in Peru and Bolivia - pepper, in Ancient Rus' - the skins of squirrels and martens, in Mexico - sugar and beans. On some islands of the Pacific Ocean there are stones.

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

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

Precious metals have all the necessary properties:

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

In the beginning, people simply weighed gold when exchanging it for goods. Then they simplified the task by putting a stamp on the metal, confirming a certain weight. Finally, the ingots began to be given a certain shape - the shape of coins. And the amount was the number indicated on the coin. Subsequently, states began to take upon themselves the function of certifying the weight and authenticity of the metal, confirming it with a certain stamp.

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

Coins of the Lydian kingdom, which extended into the western territory of modern Turkey.

From the history

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

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

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

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

To ensure that paper money did not lose its purchasing power, Great Britain introduced the “gold standard” in the 19th century. That is, each bill had a gold backing. All countries quickly began to switch to this standard, national currencies became strong and reliable, people trusted them. That is, for example, 20 dollars could be exchanged for one ounce (31.1 grams) of gold.

England itself abandoned the gold standard in the 30s. It became unprofitable. During the First World War, during financial crises in countries, the economies of many powers faltered, the demand for gold increased, and the national currency depreciated. But England still remained strong, as did its pounds sterling. Other countries began to buy them as a currency with a guarantee. England began to lose its own gold reserves. The final abandonment of the gold standard occurred in 1944. Due to the devastation of war, money in many countries became worthless. Only the United States could offer the dollar as a world currency. It was securely backed by gold at the rate of $35 per ounce. This course lasted until 1971.

Video: Galileo. History of inventions. Money

Types of money

Money has gone through a long evolutionary path: from cattle to virtual analogues that are impossible to even touch, for example, electronic money, cryptocurrency, etc. The essence of money, its functions, and appearance changed with the development of commodity relations in society. At the beginning of its evolutionary path, of course, it was commodity money.

Commodity money

Commodity money is a real equivalent product, the purchasing power of which is completely equal to the value inherent in this product. This is a type of money that has evolved from necessities to luxury goods, and then to gold and silver bullion.

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

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

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

From the history

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

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

People often wonder, is it possible to pay with that kind of money in a store? Of course, quite officially and for any product or service. But this is not profitable. The actual value of investment money is always higher than the nominal value. For example, a hundred-ruble Olympic banknote can be sold today to collectors for 3,000-5,000 rubles. The Matsesta gold coin, weighing 1 kg, issued in honor of the Winter Olympic Games in Sochi, has a face value of 10 thousand rubles. And you can actually get 2.4 million rubles for it.

Full money

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

In fact, there is no threat to full-fledged money: money made from gold does not depreciate, but rather increases in price. However, thanks to new rich deposits, silver and copper have lost value several times in their history. As a result, the first country to switch to the “gold standard” was industrialized England, and all the others followed suit. That is, only gold coins began to be considered full-fledged money, and silver and copper became inferior. What is defective money, read on.

Nowadays, full-fledged money is used only in the form of limited editions of collectible and commemorative coins. This type of money is no longer widely used, and here's why:

• money made from precious metals requires expensive production;
• over time, such money wears out, loses its weight and its real value;
• the need for such money may not keep pace with the needs of the market, when the range of goods and services is growing and there are not enough means of payment for the circulation of goods and services;
• Not every country has its own deposits of precious metals; they had to be purchased from other countries.

Bad money

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

Bad money can be divided into three groups:

• paper;
• metal;
• credit

The first paper money, according to many experts, appeared in China. In Russia, paper notes began to be produced in 1769.

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

Some Americans still believe their dollars are tied to gold. In fact, they are no longer tied to either gold or silver, but rely on government decree and people’s trust in this decree. The inferior money that people use now is not backed by anything. They are called fiat.

Fiat money

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

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

This can be represented schematically like this:

This is “trust money”, secured only by the authority of the state. They are at risk of depreciation due to hyperinflation. And inflation, one might say, is a situation when a large amount of money preys on a small amount of goods.

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

The second reason for hyperinflation was the situation when, after perestroika, almost all factories and plants stopped working or sharply reduced productivity. Main reasons: the planned economy collapsed. And large amounts of money were withdrawn from circulation through “confiscation” reforms, which will be discussed later. Creating new business relationships was not easy, especially with a lack of working capital. Those who produced the products survived. But even here everything is not simple.

Example

Tuapse ship repair plant, which was prosperous in the USSR. He repaired ships of the military fleet and a little - civilian, produced bushings and rings necessary for repairing ship engines. Then there were significantly fewer orders for ship repairs - the country’s spending on the Army and Navy decreased, and civilian ships began to call less frequently, either they were unclaimed, or there was simply no money for repairs.

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

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

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

With the advent of Gaidar, people learned the concepts of “privatization” and “liberalization”. According to his program, prices were released in 1992, and, as a result, hyperinflation broke out. And in 1993, another, now Gaidar’s, reform forced people to exchange rubles produced in 1961-1991 for new ones issued in 1993. In 3 days and with restrictions on the amount - no more than 100 thousand rubles (in those years, a thousand already had low purchasing power). Many did not have time to exchange, others simply could not. All Soviet deposits in Sberbank, all savings, became worthless. For non-citizens of Russia, that is, residents of former republics who overnight became citizens of other states, the amount was limited to 15 thousand.

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

Electronic money

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

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

Electronic fiat money are backed by the state, designated as the main currency and are required to be accepted on the same basis as regular paper banknotes. A striking example is credit and debit cards. They store money electronically, but this does not prevent us from paying with the card in stores, cafes and other places.

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

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

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

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

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

From virtual money, electronic analogues can turn into real money if you transfer them to a card and then withdraw them from this card in the form of paper money.

There are different electronic payment systems that allow you to carry out transactions with electronic money: PayPal, Yandex Money, WebMoney, Qiwi.

Digital money, or cryptocurrency

It is impossible not to mention cryptocurrency (bitcoin, ether, ripple, litecoin, etc.), which has firmly established itself in the modern world. In essence, this is a type of electronic money, but it can be safely separated into a separate type, since, unlike the same WebMoney or cryptocurrency, there are no intermediaries.

When you make a transfer from one WebMoney wallet to another, you will have to pay a commission to the system. In fact, this is what it was created for. When you pay with a plastic card of the Visa or Mastercard systems, then in each transaction there is also an intermediary - a bank, which also takes a commission for itself. Bitcoin or any other cryptocurrency is transferred from one owner to another directly, without intermediaries. This is what it was invented for.

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

Cryptocurrency is not tied to anything, neither to the dollar nor to gold, it does not even have any supervisory authority, such as the Central Bank of any state, which is engaged in the issue, that is, the issuance of money. Cryptocurrency is created using mathematical calculations of various computers (mining). Many politicians see this independence as a threat to classical currencies, so they try to limit the spread of cryptocurrency.

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

Credit money

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

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

External and internal money

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

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

Check - document confirming payment by bank transfer. Anyone who receives a check signed and stamped by the owner of the bank account can claim money from the bank. Based on this document, the specified amount on the check will be debited from the payer’s personal account.

Promotion - This type of security confirms that its owner has an interest in an enterprise. An OJSC or a CJSC can issue shares. A public company sells its shares on public markets, while a closed company distributes shares only to those who invested in creating the company.

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

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

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

Metal system

It fell into oblivion as gold and silver coins went out of circulation. But you still need to remember about it, since it is the founder of the classical monetary circulation system.

Monetary system

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

Monetary system: what is it and what types are there?

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

Monetary circulation is regulated by the following laws:

• The Constitution of the Russian Federation;
• Law “On the Central Bank of the Russian Federation (Bank of Russia)”;
• Law “On Currency Regulation and Currency Control”;
• Law “On Banks and Banking Activities”;
• Law “On combating the legalization (laundering) of proceeds from crime and the financing of terrorism.”

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

1 Currency unit. It must have a name (ruble, dollar, euro, pound, yen), an abbreviation (RUB, USD, EUR, JPY, GBP), a symbol (₽, $, €, £, ¥), a digital or numeric code (used in countries where the Latin alphabet is not used, for example, the ruble code is 643, and the American dollar is 840), small change coins (for the ruble these are kopecks, for the dollar there are cents, etc.), as well as the number system (in 1 ruble 100 kopecks are simplified decimal system, when the base currency consists of 100 derived units).

2 Type of banknote. It can be paper or metal

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

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

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

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

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

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

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

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

In Russia, the minting of coins and the printing of banknotes is carried out by OJSC Goznak, which is 100% owned by the state. Gosznak includes the following enterprises:

• Moscow Printing Factory,
• Moscow printing house,
• Moscow Mint,
• St. Petersburg Mint,
• St. Petersburg paper mill,
• Perm Printing Factory,
• Krasnokamsk paper mill)
• Scientific Research Institute (Research Institute of Gosznak).

Gosznak enterprises produce not only money (banknotes and coins), but many other products, including:

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

Gosznak produces products not only for Russia, but also exports products to more than 20 countries in Asia, Africa, Europe and the CIS countries.

From the history

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

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

Banknotes and coins of the Bank of Russia

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

Coins. Click on the name of the coin.

1 kop. 5 kopecks 10 kopecks 50 kopecks 1 ₽ 2 ₽ 5 ₽ 10 ₽

Material: copper-nickel alloy

Material: bimetal (copper clad with cupronickel)

Material: steel with brass galvanized coating

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

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

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

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

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

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

There are no hopeless situations, there is laziness and reluctance to change yourself, your usual way of life, to go beyond your comfort zone. And all these problems are solved primarily through the correct setting of life goals, your values ​​and beliefs, desires and aspirations.

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

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

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

Once you have a clear picture in your mind of your dream life, start thinking about how to achieve it. Does what you are doing now contribute to this? Will your activities help you get what you want? If not, then look for options, read biographies of successful people, find out what helped them succeed in life. Study business literature, read economic magazines and websites. This will help you reorganize your mind to attract money.

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

Answers to frequently asked questions

What role does money play in the economy?

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

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

What is the best thing to invest in in 2018?

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

• Stock

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

• Bonds

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

• Real estate

One of the popular ways to invest free money has always been real estate. There is an opinion that real estate always increases in price and it is better to have a roof over your head than money that can depreciate as a result of inflation, a rise in the dollar, or some kind of crisis. There is logic in this, but if we look at real estate from the point of view of investment, now it brings low dividends and you won’t be able to earn a lot of money with it.

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

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

• Bank deposits

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

When making a decision in favor of one or another instrument, you need to take into account the amount of investment, the period, and your risk appetite, so it is not possible to give unambiguous recommendations.

How much money do you need in Russia for a normal life?

What does the concept of “normal life” mean? Everyone has their own idea. But the generally accepted thing is:

• having your own home, one room for each family member;
• having a car;
• the opportunity to travel once a year;
• the opportunity to receive paid education without a loan;
• have the opportunity to renovate your home and buy new furniture every five years;
• update your wardrobe every season;
• eat what is healthy and tasty.

As the newspaper “Arguments and Facts” writes, for a normal life for a family of three, the Russians named the amount at 83.6 thousand rubles. The survey was conducted in different regions of the country by specialists from the Romir research holding.

Conclusion

So, money is a tool to achieve goals. Indeed, if you have enough money, you can live the life you dream of. You can allow yourself to do what you like, and not what you need, and gain freedom of choice in everything.

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