Lecture 1. Money circulation and credit

1. The essence and functions of money

2. Monetary policy

4. Money circulation and monetary systems

1. The essence and functions of money

Money- a specific product that is a universal equivalent of the value of other goods or services.

Money expresses the value of other goods, since money is easily exchanged for any of them. Such monetary valuation makes dissimilar goods easily comparable in exchange.

However, it is not money that makes goods commensurable, but vice versa: precisely because all goods represent embodied human labor and, therefore, are themselves commensurable in terms of the amount of labor expended, the value of all goods is measured by the same specific commodity, turning this latter into a common for them a measure of value, that is, in money.

Typically, money becomes a product with high liquidity, that is, the product that is easiest to exchange for another product.

In addition to being a measure of value for other goods, money is a medium of exchange (an intermediary in the exchange process).

In addition, the role of money can be played by various things, other property rights, obligations and property-obligation complexes.

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

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

A distinctive property of full-fledged money is the presence of an internal and very high value, determined by the labor costs for their production.

The characteristics of full-fledged money follow from this property:

ratio of nominal value to real value;

not subject to impairment, except in extraordinary cases;

possibility of physical use, like any other product.

Substitutes for real money (signs of value) - This is money whose nominal value is higher than its real value, i.e. labor expended on their production.

These include:

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

value signs made of paper;

electronic means of payment.

Currently, in the economic literature, a distinction is made between commodity money and credit money.

Function commodity money carried out goods that had their own value. In the 19th century money was represented by gold and silver.

The gold standard was established, and gold monopolized the functions of money until the 70s. XX century

The only currency that had a gold content was the American dollar. Other currencies were equated to the dollar, and through it to gold. Thus, credit money- These are securities that have no intrinsic value.

Credit money owes its origin to credit and credit transactions. One of their varieties is a bill of exchange.

Today, the main type of credit money is banknotes, which are issued by the central bank and used in credit transactions.

In the Russian Federation, banknote issue in accordance with the Constitution of the Russian Federation and the Federal Law “On the Central Bank of the Russian Federation” is carried out by the Bank of Russia.

In addition to banknotes, credit money includes bills of exchange, checks, electronic money, and credit cards.

The state, having assigned the right to issue paper money, receives issue income when issuing it in the form of the difference between the nominal value of the issued paper money and the cost of its issue (costs of paper, printing).

The results of the use and impact of money on various aspects of activity and development of society characterize them role.

The role of money First of all, it manifests itself:

1. Participation of money in setting the price of goods. In a market economy, this value is added up based on the cost of the product, with a possible deviation of the price from the value. The price of a product is influenced by the relationship between supply and demand and competition, which allows the price of the product to be either reduced or increased.

2. Are of great importance money in the process of money circulation when they perform the function of a medium of exchange, or means of payment. When paying for purchased values ​​or services provided, the buyer controls the price level and quality of goods and services, which forces manufacturers to reduce prices and improve the quality of their products. Ultimately, this is aimed at increasing production efficiency.

3. The role of money is changing due to changes in economic development conditions. During the transition to a MARKET economy, their role increases. Thus, the scope of use of money in the privatization of enterprises and property, including real estate, is expanding. The role of money in the valuation of property, as well as in the acquisition of property, is increasing.

4. Money plays an important role in the economic activities of enterprises, in the functioning of state bodies, in increasing people’s interest in the development and improvement of production efficiency, and the economical use of resources. With the help of money, you can determine not only the total amount of costs (materials, depreciation, electricity, wages, etc.) for the production of each type of product and their total volume, but also the results of production through the price of individual types of products, their total volume, and the amount of profit received.

5. Money plays an important role in economic relations with other countries. Money is used to evaluate and determine the profitability of operations for the export and import of goods, as well as for monetary settlements for such operations.

6. Money is also used when making payments between countries in connection with credit and other non-commodity transactions. To characterize the role of money in foreign economic relations, the following is also important. Each country periodically draws up a trade balance, which compares the export and import of goods expressed in money.

Essence money lies in the fact that they serve as a necessary active element and integral part of the economic activity of society, the relations between various participants and links in the reproduction process.

Money is a special type of universal commodity, used as a universal equivalent by which the value of all other goods is expressed. It should be noted that money, although quite specific, is nevertheless a commodity.

Signs of money as a commodity:

1) high liquidity (the ability to quickly participate in the exchange process);

2) general equivalence (they are a measure of all other goods);

3) a universal means of payment.

To determine the degree of ease with which any type of asset can be converted into an accepted medium of exchange in the economy, the concept of liquidity is used.

Liquidity- an economic term denoting the ability of values ​​(assets) to be quickly sold at a price close to the market price. Liquid - convertible into money.

The essence of money characterized by their participation in:

Implementation of various types of social relations;

Distribution of gross national product (GNP);

Determination of prices expressing the cost of goods. The production of goods (provision of services) is carried out by people using tools and objects of labor. Produced goods have a value that is determined by the total volume of the transferred value of tools and objects of labor, and the value newly created by living labor.

In addition, the essence of money is characterized by the fact that it:

They serve as a means of universal exchange for goods, real estate, works of art, jewelry, etc. This feature of money becomes noticeable when compared with the direct exchange of goods (barter). The fact is that individual goods can also be exchanged for others on barter terms.

Improves conditions for maintaining value. By storing value in money rather than goods, storage costs are reduced and spoilage is prevented. Therefore, it is preferable to store the value in money.

The essence of money is revealed through their properties:

1. Money is a constantly recognized value.

2. Money has the property of exchangeability.

3. Money has its own independent exchange value.

4. Money is the most liquid asset.

Properties of money.

Money has the properties of liquidity, portability, durability, divisibility, standardization, and recognition.

The last property of money is its portability. They should be such that they are easy to wear and convenient to use in everyday life. With each new form that money acquired in the process of historical development, its portability increased. Modern cash - banknotes and small change - are highly portable. However, this did not end the process of improving the portability of money. A checkbook, which allows for the movement of deposit money much more than cash. And plastic cards, which are used to transfer money via electronic communication channels, are even better than check books.

Functions of money. Money performs five functions.

Money as a measure of value. The value of a product expressed in money is the price. A product that is in the form of value can have a price. This allows money to be used to compare the relative values ​​of different goods.

Money as a means of payment. Money performs this function when providing and repaying cash loans, in monetary relations with financial authorities, when paying off wage arrears, etc.

Money as a medium of circulation. Used as an intermediary in the circulation of goods. A medium of exchange is a special type of product that the buyer transfers to the seller when purchasing a product or service.

Money as a means of accumulation. This function of money is associated with its static state, i.e. lack of treatment.

World money. Money in the system of international economic relations. In this role they function as a general means and general materialization of social wealth.

Money supply in circulation and its structure.

Money turnover- this is the process of continuous movement of cash and non-cash money in all their forms between subjects of economic relations. It serves the flows of products and income in social reproduction.

Cash turnover consists of many different cash flows, which are closely related to each other, constantly transferring into each other, balancing each other. This gives money circulation the character of a closed, unified, balanced process, regardless of the form in which money appears and in what ways it is set in motion.

Money turnover, - cash turnover, - part of cash turnover. The circulation of banknotes involves their constant transfer from one legal entity or individual to another.

Money supply is a key indicator of money turnover, and regulating its volume is a decisive way to achieve monetary policy goals. Money supply- the totality of cash and non-cash funds in circulation, available to individuals, legal entities and the state.

Monetary base (in the narrow sense)- this is the totality of cash in circulation and the total volume of reserves of commercial banks held in accounts at the central bank.

Monetary base (in the broad sense) – cash in circulation, taking into account balances in the cash desks of credit organizations (except for the Central Bank), correspondent accounts and deposits of credit organizations with the Central Bank, required reserves (2.5%), bonds of the Central Bank, obligations of the Central Bank to repurchase the Central Bank, etc. -reservations for foreign exchange transactions.

Monetary aggregates. Indicators of the structure of the money supply are monetary aggregates. Monetary aggregates are types of money and funds that differ from each other in the degree of liquidity (the ability to quickly convert into cash). Different countries have different monetary aggregates.

Monetary aggregates of the Russian Federation represent a hierarchical system - each subsequent unit includes the previous one.

Monetary aggregates.

To analyze changes in the movement of money on a certain date and for a certain period, financial statistics began to be used first in economically developed countries, and then in Russia, monetary aggregates M0,M1, M2, MZ, M4.

M0 includes cash in circulation: banknotes and coins, i.e. money outside banks;

M1 combines M0 and enterprise funds in settlement, current and special accounts in credit institutions, demand deposits;

M2 includes the aggregate M1 + time deposits of the population in commercial banks, as well as short-term securities;

MZ combines M2 + large time deposits, certificates of deposit;

M4 covers MH + government and corporate securities.

In practice, central banks of various countries operate, for example, with the following units:

M2 and MZ - US Federal Reserve;

M2 - Bank of Russia;

MZ - Eurobank.

There must be balance between the aggregates, otherwise there will be a disruption in monetary circulation.

Practice shows that equilibrium occurs when M2 > M1, it strengthens when M2 + M3 > M1

Currently, the indicator used to characterize the money supply is monetary base.

It includes M0 (cash in circulation: banknotes and coins, i.e. money outside banks) plus cash in the cash desks of commercial banks, required reserves in the Bank of Russia and funds in correspondent accounts of commercial organizations in the Bank of Russia.

The main directions of money movement are the following:

issue of cash and non-cash money;

organized import of cash foreign currency;

payments along the chain of economic relations in the process of production and sale of goods;

payment of wages to the population;

organized savings of the population;

investment of savings by financial and credit institutions;

movement of foreign investment, private and public, from country to country.

Issue of money- the first stage of money turnover.

The primary is the issue of non-cash money, which is carried out by crediting additionally issued money to correspondent accounts in commercial banks in the form of loans from the Bank of Russia or budgetary notes.

Cash emission is secondary in relation to non-cash money; cash is delivered to the territorial divisions of the Bank of Russia and then provided to commercial banks in exchange for writing off a similar amount of non-cash money from their correspondent accounts. In the same way, enterprises receive cash while simultaneously writing off non-cash amounts from their settlement and current accounts in commercial banks.

The issue of cash ends with the payment of wages and social benefits to the population, which has the nature of an additional turnover in relation to regular payments.

In Russia, the amount of cash is constantly increasing. For example, from 2002 to mid-2007 it increased almost five times and amounted to 3.1 trillion. rub. A similar trend is observed in most countries of the world, including the United States and the European Union.

Cash turns over five to six times a month. Banknotes last an average of one and a half years. The costs of issuing cash are higher than the costs of issuing non-cash money, which speaks in favor of expanding non-cash money.

However, the share of cash in the turnover structure is currently quite high. Thus, in retail trade it is 75% in the USA; European Union - up to 86%; Japan - 90%; Russia - up to 97%.

At first, the volume of goods produced was relatively small and the exchange of goods between tribes was random (all goods produced were spent on consumption) and carried out in kind. Gradually, production volume increased and surplus goods began to appear. The exchange began to be permanent and widespread. A need arose for a special means of circulation with which it was possible to quickly and at minimal cost exchange one product for another. Money became such a means of circulation (The first function of money is money as a medium of exchange).

The main property of money is absolute liquidity.

Liquidity is a measure of how quickly an asset can be exchanged for cash.

There are three subsystems in the system of monetary relations:

• functional;
• economic;
• in the shape of .

Functional subsystem

Money- this is a means that expresses the values ​​of commodity resources participating at a given time in the economic life of society, the universal embodiment of value in forms corresponding to a given level of commodity relations. This definition is based on the concept of value, which is more consistent with the approach to money accepted in world science.

In another definition, money is an absolutely liquid medium of exchange that has two properties:

• exchanged for any other product;
• measures the cost of any other good (this function is expressed in price and in the scale of these prices).

The essence of money is revealed in five functions:

• Means of exchange

Measure of value formed during price formation, it determines the value of the product, which is measured in money (i.e., equating goods with each other). In this way, a quantitative comparison is obtained.

The monetary measurement of value is price. It depends on several conditions:

• production conditions;
• terms of exchange.

In order for prices to be comparable, they must be brought to a single scale.

Price scale is the weight content of gold or silver, fixed as a unit of measurement.

As a measure of value, money can act as a countable quantity, appearing in the form of numerical quantities. Accounting money is used to express prices, accounting and analysis, and maintaining accounts for participants in economic life.

Means of exchange. The monetary expression of the value of goods does not yet mean their sale. There must be an exchange. Money is an intermediary in exchange from the beginning of a transaction (T - D) to its completion (D - T). During the period when trade predominated, money acted primarily as a medium of exchange; after the emergence of credit and economic development, the function of a means of payment comes to the fore, which includes the function of a means of exchange and is transformed into the function of a means of payment. This is facilitated by the use of plastic cards and other electronic payment instruments that allow payments by transfer from a bank account, as well as making wholesale and retail purchases.

Means of payment-payment time does not coincide with payment time, goods are sold on credit, with deferred payment
(T - O and O - D).

Means of storage— cash reserves (account balances, gold and foreign exchange reserves). Money, which performs the function of accumulation, participates in the process of formation, distribution, redistribution of national income, and the formation of savings of the population.

World money used in international payments.

In a modern developed economy, there are three functions of money - a measure of value, a means of storage and a means of payment, and the medium of exchange remains in very small quantities.

Economic subsystem

Financial system:

• distribution of money in the country;
• budget formation in the country.

Credit subsystem:

• regulates internal and external debt;
• forms loan capital;
• related to the circulation of securities;
• associated with international monetary relations.

There is currently no use of issuing money to cover deficits. But if there is a federal budget deficit, the government must find sources to cover it. Until 1995, the Russian Federation used a source of coverage that was not typical for a market economy—government loans from the Central Bank. This leads to additional inflation, since additional money is released into the economy that is not backed by goods.

The use of market mechanisms provides sources for covering the deficit and provides for:

As a result of the issue of government securities, money was redistributed between economic entities:

• persons who had free funds loaned them to the state by receiving a bond;
• budgetary organizations received funding for their expenses from this money.

The budget deficit, while covering , does not change, inflation does not increase, but public debt grows.

Funds for repaying the public debt are provided in the federal budget under the heading “Expenditures”.

Cash Flow Form

Commodity money

For a long time, rather rare and expensive goods served as money: livestock, shells, tea, tobacco, rice, salt, fish, furs.

As a result of the internationalization of ties, humanity has come to noble - gold and silver.

Precious metals were chosen because:

• they could retain their value for a long time
• were uniform in quality
• had divisibility and high cost (due to the laboriousness of their extraction and processing)

Gold and silver have served as money for thousands of years. The final displacement of precious metals from the status of money occurred in the mid-70s of the 20th century, when the demonetization of gold took place - the replacement of gold and other precious metals with paper and credit money.

Money in its development went through several forms of material media:

1. Commodity, metal money- real or full money.

Real money is money whose nominal value corresponds to the real value of the metal from which it is made (copper, silver, gold).

The coin had established distinctive features (appearance, weight content).

2. Substitutes for real money(inferior) is money whose nominal value is higher than its real value, that is, higher than the cost of labor spent on its production. These include:

• metal signs of value - a worn-out gold coin, a small coin made of cheap metal (copper, aluminum);
• paper value signs - made of paper. These are paper money and credit money.

Paper money

The state has the right to issue paper money.

The difference between the nominal value of the issued money and the cost of its issue forms the treasury's share premium. The essence of paper money is that it is issued for cover and is endowed with a forced exchange rate by the state. Paper money is not exchangeable for metal.

Economic nature of paper money:

• they are always unstable (they cannot constantly fix their course);
• their release is never regulated by the need for money in trade;
• There is no objective mechanism for removing excess money from circulation.

The depreciation of paper money is associated with excess issuance, a decline in confidence in the government, and unfavorable conditions in the country.

Credit money

Credit money is obligations, the total volume of contracts concluded, orders placed or services received, which fall within a certain period of time, regardless of when the necessary funds were allocated and when payments will actually be made.

The essence of the loan is that the amount given back will be returned with interest.

Credit money appeared on the basis of the function of money as a means of payment.

The following types of credit money are distinguished:

• banknote;
• electronic money.
  

Types of money in the modern world

Types of money in the modern monetary circulation system

• Cash
  • Small coin
  • Paper money:
    • Treasury bills were issued by the state, had no real value, but were required to be accepted in all payments and settlements. Today, in most countries, paper money, due to its ability to depreciate, is replaced by credit money (Credit money is money that arose on the basis of the development of credit relations. They pour out cash and non-cash credit money.).
    • Banknotes
  • Credit money:
    • Bills of exchange
    • Banknotes
• Non-cash money is money that exists only in the form of entries in settlement, current, savings and other accounts of individuals and legal entities. Computerization of the banking sector led to the emergence of electronic money and credit cards.
  • Credit plastic cards
  • Payment plastic cards
  • Electronic money- this is money in electronic bank accounts

Functions of money

Functions of money- this is a concentrated expression of them roles in the economy.

Money has such a diverse set of properties that it becomes necessary to classify them, highlighting a number of functions. Each of the functions of money describes a more or less homogeneous range of economic transactions performed using this function. It should be borne in mind that money is not the sum of functions, and by performing any one function, it retains its unity and contains all other functions.

The functions of money are in constant dynamics: some arose earlier, some later; individual functions have greatly changed their content and even lost significant significance.

• Stage I. . Historically, the first function of money. As a measure of value, money is a unified measure of the value of all goods.
• Stage II. Money as a means of purchasing. Money as a means of purchase is a means of circulation.
• Stage III. .In the function of money as a means of payment, a time lag (discrepancy in time) arises between the sale of a product and the receipt of money for it. Under these conditions, conditions are objectively created for such an economic phenomenon as credit.
• Stage IV. Money as a means of distribution. The distribution function of money is only its movement from its owner to the recipient. This function constitutes an objective economic prerequisite for the emergence of public finance.
• V stage. and savings. The process of savings and accumulation is a necessary element of the modern economy.
• Stage VI. . In the function of world money, money contributes to foreign exchange, the creation of a balance of payments, and the formation of an exchange rate.

As measures of value money was allocated from the world of goods to fulfill the role of a universal equivalent. Being a measure of value, money acts as a universal measure of the values ​​of all other goods. Money expresses goods, services, production costs, individual and general needs, the volume of production at the level of enterprises and the entire national economy; wealth, income, debts - everything has a monetary value. Modern money has the property of commensurability not only in statics, but also in dynamics.

Purchasing medium- also one of the historically first functions of money. In this function, money serves the buying and selling process. This function is called a medium of exchange, since money in this case serves the continuous process of circulation of goods, services, securities, etc. This function is associated with the process of purchase and sale, that is, with the transformation of goods into money.

During the sale of goods, a time gap may arise between the transfer of the goods to the buyer and the receipt of money from him. In this case, the seller provides the buyer with a so-called deferred payment or credit. When the money does arrive to the seller, it performs the function means of payment. In this case, money pays off the resulting debt, servicing not only the loan, but also the payment of wages, as well as all other types of advance payments.

Distribution function of money, which historically arose after the appearance of such functions as a medium of exchange and a means of payment, is that one independent economic entity transfers to another a certain amount of money without demanding any equivalent compensation in return. It is on this monetary function that the state budget, the distribution of enterprise profits, and the socio-economic systems of modern states are based.

In function savings and savings money is not used for circulation, but to create an independent form of wealth. The entire investment process, i.e. economic growth, depends on this; development of the banking system, stock market, insurance, pension and other financial funds.

Money has always served not only economic relations, but also world economic relations. The role of the currency function of money is constantly increasing, especially in the context of the globalization of the world economy and finance. Collective currencies are created, such as the euro.

Lecture 11. LEGAL BASIS OF MONEY CIRCULATION

1. Concept, signs and functions of money.

2. The concept of the monetary system and its elements.

3. Legal regulation of cash circulation.

4. Legal basis for non-cash payments.

Concept, signs and functions of money

Since monetary circulation is, first of all, the movement of money, it seems logical to consider the concept, essence and functions of money as an economic and legal category.

At a certain historical stage, the development of commodity exchange led to the fact that from the entire mass of other goods a specific product stood out, to which the social function of a universal equivalent was assigned.

The essence of money as a universal equivalent is manifested in the fact that with its help the value of any product is determined and the exchange of some goods for others is ensured. Possessing the property of universal direct exchangeability for all other goods, money becomes an independent economic category. It is the view of the essence of money as a universal equivalent that prevails in financial and economic literature. The essence of money is manifested in its functions, among which the following stand out.

1. Money as a measure of value - money is used to estimate the value of all other goods and services through a price-setting mechanism. Price is the monetary expression of the cost (value) of a product, service, asset, as well as a factor of production (natural resources, resources, capital).

2. Money as a medium of exchange - money acts as an intermediary between the seller and the buyer, between the producer of works and services and their consumer. The exchange of goods using money is carried out according to the formula: T-D-T. Money is constantly in the process of exchange and continuously serves it.

3. Money as a means of payment - means that money is used to make settlements between business entities for obligations, contributions and other payments.

4. Money as a means of accumulation and savings - means that money turns into a special asset (property), which provides its owner with the opportunity to buy various goods in the future. The term “accumulation” applies to enterprises and the state, and “savings” to households.

5. The function of world money is means the functioning of money in international circulation and ensuring universal equivalence of exchange.

Money is also a legal category. In the legal sense, money acts as an object that is the object of civil legal relations and performs the function of general exchange. The following main public legal characteristics of money can be distinguished:

1) only what is recognized as money by the state is recognized as money;

2) money is produced only according to samples and descriptions strictly established by the state by specialized state enterprises (mints);

3) the nominal value of money is arbitrarily assigned by the state and expressed in national monetary units;

4) money is required to be accepted by all residents of the issuing country at nominal value;

5) violation of the state monopoly on the production of money for the purpose of releasing it into circulation entails the application of criminal and administrative measures.

The main legal characteristic of money is that the state grants it the special status of the only legal tender throughout the territory of a particular state.

In the modern world, every person deals with money every day, paying with it in stores, at gas stations, or making electronic transfers and payments. But at the same time, despite the fact that banknotes with watermarks have long become a part of our lives, few people think about what “money” is and can formulate a definition of this concept.

Today, I will not only tell you what the meaning is hidden behind the concept of “money” and what is the history of its origin, but I will also share the secret of how to quickly increase your capital without financial investments.

What is money in simple words

Banknotes with watermarks have been one of the most important economic resources for many centuries, but it is not customary to talk about money out loud. Most often, neither at school nor at home we are told about them, they are not taught how to handle money correctly and increase our capital. At best, parents encourage children to be as frugal as possible. As a result, we know negligibly little about the main economic resource. So what is money?

Money is metal and paper tokens that measure the value of goods and services. These “bank notes” are nothing more than a specific product, on the one hand, which has a maximum liquidity indicator, and on the other, an negligibly low cost.

The paradox is that money itself has practically no value; it is just paper that cannot be eaten or used to fill the gas tank of a car. And if the government carries out a monetary reform, replacing old banknotes with new ones, then banknotes will immediately turn from a means of payment into useless pieces of paper.

But, at the same time, while money is “in use,” it can be exchanged for any goods and services: food, gasoline, cars, housing, travel... Therefore, banknotes with watermarks play such a big role in our lives. It is their presence or absence that determines how much we are provided with everything we need. Accordingly, every person strives to earn as much money as possible.

Money is not just a means of payment

• this is a universal equivalent when determining the cost of absolutely all goods and services;
• criterion for evaluating our work by the employer;
• a tool for settlements during the exchange of goods (at the head of the monetary system of any country there is a banknote - the main unit of payment in the state).

By the way, in ancient times, it was the need to make payments that became the reason for the formation of a public institution, where a universal monetary measure was introduced for making transactions.

In the early, tribal period of human development, exchange was natural in nature, but at the same time there was a need to introduce some kind of universal criterion for determining the value of a particular product.

Over time, livestock became such a currency, and for a long time it was a measure of payment. But this was not profitable, since animals were, on the one hand, capital, and on the other, an expense item. After all, they needed feeding and care and could “fall” during a pestilence.

Therefore, over time, people began to use precious metals for exchange transactions. Ingots of gold or silver have undeniable value, and what is no less significant is that they are divisible. It is impossible to give ¼ of an ox for a sack of flour. And a gold bar can be sawn into a huge number of pieces. Thus, people came up with the idea of ​​​​creating coins of various denominations.

Over time, money began to be made from paper. The first such “bank notes” appeared in China in the 12th century, and only about six centuries later, in 1769, paper money came into use in Russia. At first, paper banknotes in our country could always be exchanged for gold coins, but then the precious metal, having finally lost its “monetary properties,” ceased to be a currency, and the structure of financial circulation in the state took the form of the monetary system that we see now.

Types of money

• Commodity money

Commodity money is a unit of account that has real value. First of all, these are gold, silver and even copper coins.

• Paper money

Paper money. The cost of such banknotes is several times less than their face value. That is why only the state can issue banknotes and their counterfeiting is strictly punishable by law.

• Credit funds

Credit funds are primarily financial obligations based on various agreements, such as bills, checks, bonds, electronic money, etc.

Functions of money

1. A measure of value and a means of purchase. Money as a universal equivalent serves to determine the cost of certain things. And just as weight changes in kilograms, and liquid in liters, so the price of a product is measured by the amount of money.
2. Means of payment. In the process of development of an economic institution in society, money has become a full-fledged means of payment for all goods and services, as well as for debt, credit and tax obligations.
3. Distribution. This function underlies almost all government budgets. Its essence is that one participant in the system transfers funds to another free of charge, without expecting their return. This amount goes to satisfy the need for money of a certain economic system. The most striking example is the distribution of funds in the city budget.
4. A tool for saving, saving and investing. Money can not only be spent, but also saved, donated, borrowed, and also invested in order to receive additional income from your investments in the future.
5. Method of securing international transactions. Money is necessary for conducting monetary exchanges between different countries during foreign trade transactions. The ratio of the values ​​of banknotes of different countries determines the exchange rate.

How to increase money (capital)?

There are a large number of different earning schemes. Today we will discuss universal options that do not require financial investment.

• Selling a service. If you have already reached the age of majority, you can offer your skills to potential consumers. Think about what skills of yours people would be willing to pay for? You can, for example, knit to order, teach a foreign language to schoolchildren, work part-time as a waiter in a cafe, etc.
• Working on the Internet. Almost every person, if desired, can provide themselves with an income by wisely using the capabilities of modern technologies. You can work remotely as a freelancer, fulfilling orders for money for writing texts, translating from foreign languages, or transcribing audio recordings. You can also use the Internet space to build an online business.
• Selling goods through websites with private advertisements. Feel free to offer your services as an intermediary to friends and acquaintances. The system is extremely simple: your task is to create and place an advertisement for the sale of this or that item by your client, negotiate with a potential buyer and transfer it to the “warm” seller, and receive a commission from him for the transaction.

And these are just a few of the options available to beginners. Understand the main thing - everyone can increase their income, sometimes even without leaving their main job. The main thing here is to decide what skills and abilities you have that can be in demand and paid accordingly.

That's all, I wish you prosperity and financial well-being!

Topic 1. Essence, types of money

SECTION 1. MONEY, MONEY ECONOMY

Publication of a photo report in the form of independent journalistic material.

Another example of accompanying photographs with texts is a photo report in its pure form. This genre is a rather rare guest in Kazakh newspapers and magazines. It has the right to exist when it is much more profitable to talk about an event/phenomenon (simpler, more effective, more understandable for the reader) in the language of photography rather than literature. It is interesting because it allows the photographer to reveal his journalistic talents and receive a good fee.

The style of text accompanying the photo report can be anything, as long as it matches the style/format of the publication itself. But it should be remembered that in a photo report, pictures and text interact much more strongly than in a regular article. This imposes strict restrictions on the length of the texts, on their location relative to “their” and neighboring photographs, and on the overall design of the strip. The format, the number of photographs and their relative position, the order of “reading” the photographs in the direction from the upper left to the lower right, the alternation of close-up plans (general, medium, close-up; fragment) - everything is critical and is of great importance for the reader’s perception of the photo report. If you are ready to shoulder all this burden, try to shoot and, most importantly, publish a photo report. Only personal experience, acquired later through trial and error, will give you the necessary recipes for creating this exquisite creation.

The reasons for the emergence of money and the evolution of money are the need to ensure the exchange of labor products in one form or another, as well as the development of credit relations. The isolation of money as an independent element of commodity circulation significantly increased the efficiency of exchanges, because money can be exchanged for any goods of the material world and services in any quantities and proportions. Changing the nature and forms of money constantly contributed to the growth of economic efficiency.

In a subsistence economy, products were produced intended for their own consumption - therefore, people running such an economy did not feel the need for exchange.

Gradually, people began to specialize in the production of certain types of products - a division of labor, which significantly increased its productivity. At the same time, the increased quantity of products turned out to be possible to use not only to satisfy the needs of the manufacturer, but also for exchange for other products needed by him. The production of products only for exchange gradually developed. The property separation of commodity producers made it possible to exchange the goods they owned for others or to sell goods for money.

Thus, the immediate prerequisites for the emergence of money include:

̶ transition from subsistence farming to commercial farming;

̶ property separation of producers of goods - owners of manufactured products.

The replacement of a natural economy with a commodity economy, as well as the requirement to maintain the equivalence of exchange, necessitated the emergence of money, without which the mass exchange of goods, which develops on the basis of production specialization and property isolation of commodity producers, is impossible.

The allocation of money made it possible to create conditions for the emergence of a market. In the future, the use of money is no longer reduced to simple participation as an intermediary in exchange - the movement of money acquires the features of an independent process: commodity producers can store the money received from the sale of their goods until the purchase of the desired product. From here, monetary savings arose, which could be used both to purchase goods and to lend money and pay off debts.

The prevailing approach to the essence of money is that money- this is a special type of product - a universal equivalent, performing primarily the functions of a medium of exchange and a measure of the value (value) of all other goods.

In modern conditions, money does not have its own value, but the possibility of using it as exchange value remains. This indicates that money is increasingly different from a commodity and has become an independent economic category, retaining some properties that make it similar to a commodity.

To perform monetary functions, goods must have a number of properties(Figure 1.1.):

1) rarity - the impossibility of obtaining in unlimited quantities by any potential exchange participant;