Finance, Credit, Investments – Economical Categories

Medical works in the ideas of finances and credit, in line with the specification of your research object, are characterized to be many-sided and many-leveled.

The definition of wholeness of the economical relationships formed in the process of formation, distribution and consumption of finances, as money sources is generally spread. For example, in “the general theory of finances” there are two definitions of finances: Finance

1) “… Finances reflect economical associations, formation of the cash of money sources, in the process of circulation and redistribution of countrywide receipts in line with the distribution and usage”. This definition is given relatively to situations of Capitalism, when cash-commodity relations gain universal personality; 

2) “Finances represent the creation of centralized ad decentralized money sources, economical relationships relatively with the circulation and usage, which provide for fulfillment of the state functions and requirements and also provision of the conditions of the widened further production”. This kind of definition is brought without showing the environment of its action. We talk about partly such explanation of finances and think expedient to make some requirements.

First, finances overcome the bounds of distribution and redistribution service of the national income, though it is just a basic foundation of budget. Also, formation and use of the depreciation pay for which is the part of financial domain, goes not to the circulation and redistribution of the national income (of new value during a year), but for the syndication of already developed value.

This latest first looks to be a part of value of main professional funds, later it is relocated to the cost price of a ready product (that is to the value too) and after its conclusion, and it is placed the depression fund. It is source is taken into account before hand as a depression kind in the consistence of the ready products cost price.

Second, main goal of finances is significantly wider then “fulfillment of the express functions and obligations and provision of conditions for the widened further production”. Finances exist on the state level and also on the manufactures and branches’ level too, in addition to such conditions, when the most part of the manufactures are certainly not state.

Sixth is v. M. Rodionova has a different position relating to this subject matter: “real formation of the financial resources commences on the stage of circulation, when the value is realized and concrete cost-effective kinds of the realized value are separated from the consistence of the profit”. V. M. Rodionova makes an accent of funds, as distributing relations, when D. S. Moliakov underlines professional foundation of budget. Though they are all give quite substantiate discourse on finances, as a system of formation, distribution and use of the cash involving sources, that comes out from the following definition of the finances: “financial cash relations, which forms in the process of division and redistribution of the partial value of the national wealth and total social product, is related to the subjects of the economy and development and consumption of the state cash incomes and savings in the increased further production, in the fabric stimulation of the staff for satisfaction of the society social and other requests”.

In the manuals of the politics economy we meet with the following definitions of finances:
“Finances of the socialistic state represent cost effective (cash) relations, by making use of which, in the way of planned distribution of the incomes and savings the funds of money types of the state and socialistic manufactures are formed for guaranteeing the growth of the production, rising the material and cultural amount of the people and for satisfying other general culture requests”.
“The system of creation and use of necessary funds of money resources for guarantying socialistic widened further production symbolize precisely the finances of the socialistic society. And the totality of cost-effective relations arisen between point out, manufactures and organizations, divisions, regions and separate person in line with the movement of money funds make financial relations”.
As we’ve seen, explanations of finances made by financiers and political experts in these matters do not differ greatly.
In each and every discussed position there are:

1) expression of fact and phenomenon in the definition of finances;

2) the definition of finances, as the system of the creation and use of funds of cash resources telling the truth of phenomenon.

3) Distribution of money as social product and the value of nationwide income, definition of the distributions planned character, main goals of the overall economy and economical relations, for servicing of which it is used.

If decline the preposition “socialistic” in the meaning of money, we may say, that it still keeps fact. We meet with such traditional definitions of budget, with no adjective “socialistic”, in the modern cost effective literature. We may give this elucidation: “finances stand for cash resources of development and usage, also cash relations appeared in the process of distributing ideals of formed economical product and national wealth for formation and further creation of the cash earnings and savings of the economical subjects and express, rewarding of the staff and satisfaction of the social requests”. in this elucidation of finances like D. S. Moliakov and V. M. Rodionov’s explanations, following a traditional inheritance, we discuss with the widening of the financial foundation. That they concern “distribution and partage of the value of created economical product, also the partial distribution of the value of countrywide wealth”. This latest is very actual, relatively to the privatization and the transition to privacy and is periodically used in practice in several countries, for example, Great Britain and France.

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