Scientific works in the theories of finances and credit, according to the specification of the research object, are characterized to be many-sided and many-leveled.
The definition of the totality of the economic relations formed in the process of formation, distribution, and usage of finances, as money sources are widely spread. For example, in “the general theory of finances” there are two definitions of finances:
1) “…Finances reflect economical relations, a formation of the funds of money sources, in the process of distribution and redistribution of national receipts according to the distribution and usage”. This definition is given relative to the conditions of Capitalism when cash-commodity relations gain universal character;
2) “Finances represent the formation of centralized and decentralized money sources, economic relations relatively with the distribution and usage, which serve for the fulfillment of the state functions and obligations and also provision of the conditions of the widened further production”. This definition is brought without showing the environment of its action. We share partly such explanation of finances and think expedient to make some specification.
First, finances overcome the bounds of distribution and redistribution service of the national income, though it is a basic foundation of finances. Also, formation and usage of the depreciation fund which is the part of a financial domain belong not to the distribution and redistribution of the national income (of newly formed value during a year), but to the distribution of already developed value.
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This latest first appears to be a part of the value of main industrial funds, later it is moved to the cost price of a ready product (that is to the value too) and after its realization, and it is set the depression fund. Its source is taken into account before hand as a depression kind of the consistency of the ready products cost price.
Second, the main goal of finances is much wider than “fulfillment of the state functions and obligations and provision of conditions for the widened further production”. Finances exist on the state level and also on the manufacturers and branches’ level too, and in such conditions, when the most part of the manufacturers are not stated.
In the manuals of the political economy we meet with the following definitions of finances:
“Finances of the socialistic state represent economical (cash) relations, with the help of which, in the way of planned distribution of the incomes and savings the funds of money sources of the state and socialistic manufacturers are formed for guaranteeing the growth of the production, raising the material and cultural level of the people and for satisfying other general society requests”.
“The system of creation and usage of necessary funds of cash resources for guarantying socialistic widened further production represent exactly the finances of the socialistic society. And the totality of economic relations arisen between state, manufacturers and organizations, branches, regions and separate citizen according to the movement of cash funds make financial relations”.
As we’ve seen, definitions of finances made by financiers and political economists do not differ greatly.
In every discussed position there are:
1) expression of essence and phenomenon in the definition of finances;
2) the definition of finances, as the system of the creation and usage of funds of cash sources on the level of phenomenon.
3) Distribution of finances as the social product and the value of national income, the definition of the distributions planned the character, main goals of the economy and economic relations, for servicing of which it is used.
If refuse the proposition “socialistic” in the definition of finances, we may say, that it still keeps actuality. We meet with such traditional definitions of finances, without an adjective “socialistic”, in the modern economic literature. We may give such an elucidation: “finances represent cash resources of production and usage, also cash relations appeared in the process of distributing values of formed economical product and national wealth for formation and further production of the cash incomes and savings of the economic subjects and state, rewarding of the workers and satisfaction of the social requests”. in this elucidation of finances like D. S. Polyakov and V. M. Rodionov’s definitions, following the traditional inheritance, we meet with the widening of the financial foundation. They concern “distribution and redistribution of the value of a created economical product, also the partial distribution of the value of national wealth”. This latest is very actual, relatively to the process of privatization and the transition to privacy and is periodically used in practice in different countries, for example, Great Britain and France.
“Finances – are cash sources, financial resources, their creation and movement, distribution and redistribution, usage, also economic relations, which are conditioned by entering calculations between the economic subjects, movement of cash sources, money circulation and usage”.
“Finances are the system of economic relations, which are connected with firm creation, distribution, and usage of financial resources”.
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We meet with absolutely innovational definitions of finances in Z. Body and R. Merton’s basis manuals. “Finance – it is the science about how the people lead spending `the deficit cash resources and incomes in the definite period of time. The financial decisions are characterized by the expenses and incomes which are 1) separated in time, and 2) as a rule, it is impossible to take them into account beforehand neither by those who get decisions nor any other person”. “Financial theory consists of numbers of the conceptions… which learn systematically the subjects of distribution of the cash resources relative to the time factor; it also considers quantitative models, with the help of which the estimation, putting into practice and realization of the alternative variants of every financial decision take place”.
These basic conceptions and quantitative models are used at every level of getting financial decisions, but in the latest definition of finances, we meet with the following doctrine of the financial foundation: the main function of the finances is to the satisfaction of the people’s requests; the subjects of economic activities of any kind (firms, also state organs of every level) are directed towards fulfilling this basic function.
For the goals of our monograph, it is important to compare well-known definitions about finances, credit, and investment, to decide how and how much it is possible to integrate the finances, investments and credit into the one total part.
Some researcher thing that credit is the consisting part of finances if it is discussed from the position of essence and category. The other, more numerous group proves, that an economic category of credit exists parallel to the economic category of finances, by which it underlines impossibility of the credit’s existence in the consistency of finances.
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