The concept of monetary circulation and its types scientific article. Types of money and the concept of money circulation

concept monetary circulation

Changing the form of value (commodity for money, money for goods), money is in constant motion between three subjects: individuals, business entities and public authorities. The movement of money in the performance of their functions in cash and non-cash forms is money turnover.

The social division of labor and the development of commodity production are the objective basis of money circulation. The formation of national and world markets under capitalism gave a new impetus to the further expansion of money circulation. Money serves the exchange of the total social product, including the circulation of capital, the circulation of goods and the provision of services, the movement of loan and fictitious capital and the income of various social groups.

The beginning of the movement of money is preceded by their concentration in the subjects. They are concentrated in the wallets of the population, at the cash desks of legal entities, on accounts in credit institutions, in the state treasury. In order for the movement of money to arise, it is necessary that one of the two parties needs money. The demand for money arises in the implementation of transactions, money is needed for circulation, payments for goods and services. Their volume is determined by the nominal gross domestic product. The greater the total monetary value of goods and services, the more money is required to complete transactions. Demand for money is also shown by accumulation, which appears in various forms: deposits in credit institutions, valuable papers ah, official government stocks.

Money circulation is carried out in two forms: cash and non-cash.

Cash circulation -- the movement of cash in the sphere of circulation and their performance of two functions (means of payment and means of circulation). Cash is used:

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

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

Cash flow is carried out with the help of various kinds money: banknotes, metal coins, other credit instruments (bills, bank bills, checks, credit cards points). The issue of cash is carried out by the central (usually state) bank. It issues cash into circulation and withdraws it if it has become unusable, and also replaces money with new samples of banknotes and coins.

Cashless circulation -- movement of value without the participation of cash: transfer Money on the accounts of a credit institution, offsetting mutual claims. The development of the credit system and the appearance of customer funds on accounts in banks and other credit institutions led to the emergence of such treatment. Non-cash circulation is carried out with the help of checks, bills of exchange, credit cards and other credit instruments.

Non-cash money turnover covers settlements between:

a) enterprises, institutions, organizations of various forms of ownership that have accounts with credit institutions;
b) legal entities and credit institutions for obtaining and repaying a loan;
c) legal entities and the population for the payment of wages, income from securities;
d) individuals and legal entities with the state treasury to pay taxes, fees and other obligatory payments, as well as to receive budgetary funds.

The amount of non-cash turnover depends on the volume of goods in the country, the price level, the settlement system, as well as the size of distribution and redistribution relations carried out through the financial system. Cashless circulation is of great economic importance in accelerating the turnover of working capital, reducing cash, and reducing distribution costs.

Depending on the economic content, two groups of non-cash circulation are distinguished: commodity transactions and financial obligations.

The first group includes non-cash payments for goods and services, the second group includes payments to the budget (profit tax, value added tax and other obligatory payments) and extra-budgetary funds, repayment of bank loans, payment of interest on a loan, settlements with insurance companies.

There is a relationship and interdependence between cash and non-cash circulation: money is constantly moving from one sphere of circulation to another, cash changes form to accounts in a credit institution and vice versa. Non-cash turnover occurs when cash is deposited into an account with a credit institution, therefore, non-cash circulation is unthinkable in the absence of cash. At the same time, cash appears at the client when withdrawing it from an account at a credit institution.

Thus, cash and non-cash circulation forms the total money turnover of the country, in which there is a single money of one denomination.

The law of money circulation. Equation of exchange

Commodity- monetary relations require a certain amount of money for circulation. Law of currency, discovered by Karl Marx, establishes the amount of money needed to perform the functions of a medium of circulation and a means of payment. K. Marx defines this quantity as follows:

During metallic circulation, the amount of money was spontaneously regulated by the treasure function, i.e. the money supply increased and decreased, freely adapting to the needs of commodity production, the amount of money always remained at the required level. This ensured the stability of monetary circulation.

Obviously, in an economy, cash payments spent on goods and services during a given period of time should be equal to all cash receipts from sellers of these goods and services during the same period of time. This useful concept was formulated by the American economist I. Fisher in the following exchange equation:

Here M is the total money supply, V is the velocity of circulation of money income, P is the weighted average price of all goods and services sold, and Q is the physical quantity of these goods and services. Thus, MV is the total cash payments to suppliers of goods and services, PQ is the total cash receipts of these suppliers, and the equality of these amounts is obvious.

Types of money and the concept of money circulation

Money in its development appears in two forms:

1. valid - money whose nominal value (marked on them) corresponds to the real value of the metal from which they are made. They are stable and therefore perform all 5 functions,

2. substitutes for real money (signs of value) - money, the nominal value of which is higher than the real value, that is, the social labor spent on their production.

These include:

metal signs of value,

paper tokens of value (paper and credit money).

Paper money - these are signs, representatives of full-fledged money that arose historically from metal circulation.

The first paper money appeared in China in the 12th century, and in Europe in 1769. Paper money performs the role of a purchasing and means of payment, that is, they perform 2 functions. Issuers paper money are either the State (State Treasury) or the Central Bank. By economic nature, paper money is unstable, subject to inflationary processes. The instability is due to the fact that the issue of money is regulated not so much by the need for trade in them, but by the constantly growing needs of the state for financial resources, so paper money cannot play the role of a treasure.

The shortcomings inherent in paper money can be eliminated with the help of credit money.

loan money arise when the purchase and sale is carried out with installment payment. The appearance of credit money is associated with their function as a means of payment.

Electronic money - This is money on the calculations of the computer memory of banks, the disposal of which is carried out using a special electronic device.

Credit cards - it is a means of payment that replaces cash and checks, and also allows you to get a short-term loan from a bank.

Money circulation is the movement of money in the internal economic circulation of the country, in the system of foreign economic relations in cash and non-cash forms, serving the sale of goods and services, as well as non-commodity payments.

Methods of regulation of money circulation

Monetary regulation – these are government measures designed to achieve the correspondence of the amount of money to the objective needs of economic development.

Monetary Policy Methods of the Central Bank Russian Federation are an important element of the country's monetary system. The main ones are:

Establishment of benchmarks for the growth of the money supply;

Currency regulation, including foreign exchange interventions;

Refinancing of credit operations by setting the discount rate of refinancing;

Establishing norms for the required reserves of commercial banks deposited by the Central Bank of the Russian Federation;

Establishment by the Central Bank of the Russian Federation interest rates on operations;

Strengthening the stability of the national currency;

Issue of securities on its own behalf;

Carrying out credit expansion and credit restriction, taking into account changes in the overall economic policy states;

Improving the methods of settlements and payments.

Cash and non-cash circulation

Cash circulation - this is the movement of cash in the sphere of circulation and the performance of two functions by them (means of payment and means of circulation). Cash is used in purchase and sale transactions between individuals; in payments of individuals for utilities, in the payment of insurance compensation under the contracts of the insured, in settlements for the payment of wages, bonuses, pensions, allowances, stipends, in the settlements of procurement organizations of the system of consumer cooperation with the population.

Non-cash money circulation - this is the movement of value without the participation of cash: the transfer of funds to the accounts of credit institutions, the offset of mutual claims. The development of the credit system and the appearance of funds in accounts with banks and other credit institutions led to the emergence of such circulation.

The main instruments of non-cash circulation are: securities (bills, checks), credit cards.

* currency unit - it is a historically established, legislatively fixed unit of measurement of the amount of money, prices, goods and services,

* money supply - is the amount of cash and non-cash funds, as well as other means of payment,

* money-credit policy - this is a combination of monetary instruments (reserve rate, interest rate, loan terms, money supply parameters, etc.) and institutions of monetary regulation (the Central Bank of the Russian Federation, the Ministry of Finance, etc.).

Functions of money and the law of money circulation

The function of money as a measure of value. Money is the unit of account, i.e. the unit on the basis of which prices are set and accounts are maintained. Evaluation of goods, works, services is carried out in prices, and prices are set in the monetary units of the state (in Russian rubles in rubles).

The function of money as a medium of exchange. Money is an intermediary in transactions of purchase and sale.

The function of money as a means of accumulation and savings. Without this function, economic growth is not possible, but in order to save a certain amount in the state, the initial level of purchasing power must be maintained for a long period.

The function of money as a means of payment. Due to certain circumstances, goods are not always sold for cash. As a result, it becomes necessary to purchase and sell with installment payment, i.e. on credit.

The function of world money. This function is implemented in the process of servicing economic ties between countries. Increasingly, convertible currencies are used as world money.

Law of currency

The law of monetary circulation, discovered by K. Marx, establishes the amount of money necessary for them to perform the functions of a means of circulation and a means of payment.

The amount of money needed to fulfill the function of money as a medium of exchange depends on three factors:

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

2. the level of prices for goods and tariffs (direct connection),

3. velocity of circulation of money (feedback).

The amount of money for circulation and payment is determined by the following conditions:

1. the total volume of circulating goods and services (direct dependence),

2. the level of commodity prices and tariffs for services (the relationship is direct, since the higher the prices, the more money is required),

3. the degree of development of non-cash payments (dependence is inverse),

4. velocity of circulation of money, including credit (dependence is inverse).

The mathematical formula of the law of money circulation is as follows: D \u003d (P - K + P - B) / O, where:

D - the amount of money (money supply), P - the sum of the prices of goods (services, works) to be sold, K - the sum of the prices of goods (services, works), payments for which go beyond the given period of time (i.e. sold in payment by installments), P - the sum of the prices of goods (services, works), the terms of payments for which have already come, B - the amount of mutually repaid payments, O - the speed of money turnover for a given period of time.

Inflation, its manifestations, types and types

Inflation - this is a crisis state of the monetary system that arose in the middle of the 18th century, in connection with the huge issue of paper money.

Forms of manifestation of inflation

1. uneven rise in prices for goods and services,

2. depreciation of the money supply,

3. depreciation of the national currency against a foreign one,

4. increase in the price of gold, expressed in national currency.

Inflation Manifestation Factors

1. disproportion between various spheres of the national economy:

accumulation and consumption

supply and demand,

government spending and revenue

money supply and the needs of the state,

credit expansion (conquest).

2. public finance crisis:

budget deficit,

the growth of public debt,

issue of money.

3. world currency crises:

commodity,

energy,

currency.

Types of inflation

1. moderate (creeping). Annual growth rates of prices from 3-10%. Typical for economically developed countries. Consider it as a stimulus to production.

2. galloping - the average annual growth rate of prices from 20-100%, sometimes up to 200%. Predominates in developing countries and causes concern in society.

3. hyperinflation - an increase in prices of more than 1000% per year or more than 50% per week. It arises as a result of breaking the entire economic structure of the country and leads to the disorganization of production and the market.

Types of inflation

1. Demand inflation occurs when there is excess demand, i.e. supply is less than demand. There is a shortage of products on the market, which leads to a sharp rise in prices. A lot of money with a small amount of goods, production does not meet the needs of the population. Therefore, there is an excess demand.

2. Cost-push inflation occurs when the cost of producing goods and providing services increases rapidly under the influence of the specifics of the development of production and the activities of the state. An increase in production costs leads to an increase in prices.

Types of securities

The main types of securities are: shares, bonds, as well as other financial instruments: promissory notes, certificates, mortgages, warrants, options, futures, etc.

Stock - this is a type of security issued by a joint-stock company, it indicates the contribution of certain funds to the property of a joint-stock company and certifies the ownership of its owners to a share in the authorized capital.

Shares are issued for an unlimited period and are not redeemable. The shareholder is liable for the obligations of the joint-stock company only with his contribution. In the event of bankruptcy of this enterprise, the shareholder risks losing only the money that he spent on the purchase of shares. The issue of shares can be carried out in a certain ratio to the value authorized capital.

The share entitles its owner to receive part of the profit (dividend) from the activities of the joint-stock company and to participate in its management.

Dividend - accrued by the decision of the shareholders' meeting on each share of the annual income.

Paper primary, emission. Its resale requires making changes to the register of shareholders, equity, perpetual, non-state, usually registered.

Shares are both in documentary and non-documentary form.

Most of the shares - ordinary - give the right to participate in the management of a joint-stock company; preference shares - give the right to a certain share of the company's assets upon its liquidation, but do not have a pre-emptive right to purchase securities during an additional issue (fixed dividends).

Shares may be freely tradable and have restrictions on the order of circulation.

Bond - debt money paper that generates income in the form of%, on which the period of its limitation is indicated.

Bonds, as a rule, are primary, but can also be secondary (mortgage bonds), also government and non-government, profitable and non-profitable, documentary and non-documentary.

A bond is an issuance paper, usually urgent.

Bonds are government loans, local loans - municipal bonds of business entities.

The bond always has a declared par value, at which it is redeemed, sometimes together with the payment of the last part of the stipulated % of the income.

A bond, like a share, has a nominal, issue and market value.

Bonds can be issued by the state or JSC, they are debt obligations. Government-issued bonds pay out in the form of winnings. For bonds issued by JSCs, income is paid in the form of a fixed percentage of the nominal value. Bonds differ from shares in that their holders are not members of the JSC and do not have voting rights.

Promissory note - an unconditional written obligation of the debtor to repay the debt. It has a documentary form, a term is set, it can be nominal or order. Bill of exchange - income in the form of% or discount.

Savings (deposit) certificates – written certificates of the issuing bank on the deposit of funds, certifying the right of the depositor to receive after the expiration of the established period the amount of the deposit and interest on it.

Certificates enable banks to attract free cash and can be resold in the secondary market.

Mortgages(mortgage securities) - securities, documents on the pledge by the debtor of real estate (land, buildings), giving the creditor the right to sell the pledged property if the debt is not paid on time.

The mortgage must necessarily indicate a loan or other agreement, the execution of which is secured by a mortgage.

Warrant - a certificate that gives its owner the right to purchase securities at the price stipulated by the contract for a certain period of time or indefinitely.

Option- a contract that provides for the right of the person who purchased the option to buy, at a specified price, a specified number of shares from the person who sold the option within a certain period of time. An option gives the right not only to buy, but also to sell securities.

Futures - a transaction concluded on the exchange, providing for the purchase and sale of securities at a price fixed at the time of the conclusion of the transaction, with the payment of a sum of money after a certain period of time. Unlike an option, a futures contract is not a right, but an obligation to buy and sell.

Voucher(privatization check) - a security giving the right to a share of state property.

Signs of finance

1. monetary relations between two subjects;

2. subjects have different rights in the course of these relations;

3. in the process of these relations, a nationwide fund of funds is formed - the budget;

4. regular receipt of funds to the budget was made thanks to taxes, fees and other payments of the state coercive nature, which is achieved through the legal rule-making activities of the state.

Stages of development of finance

1. undeveloped financial system - the bulk of the money (1/3 of the budget) was spent on military purposes and had virtually no impact on the economy.

2. a wide variety of financial relations has appeared - finances are becoming one of the most important foundations for indirect impact on relations social reproduction, incl. reproduction of the material benefits of the labor force and production relations.

First national fund became the state budget where taxes are the main source of income.

Taxes are either direct or indirect.

The second largest national fund of funds became the state property and personal insurance fund.

Purpose of Finance

1. they express monetary relations,

2. provide the needs of the state and the enterprise in cash,

3. control the spending of these funds.

In terms of its material content, finances are targeted funds of funds, which together represent the resources of the country. The main condition for the growth of financial resources is an increase in national income.

The essence of finance is manifested in their functions.

Functions of Finance

1. distribution- manifests itself in the distribution of national income, when the creation of basic or primary income occurs. Their sum is equal to the national income, they are formed during the distribution of national income among the participants in material production (group 1 - workers, employees, farmers, peasants and group 2 - enterprises in the sphere of material production).

Further distribution or redistribution of the national income is necessary, as a result of which secondary or productive incomes are formed. These include income received in non-manufacturing sectors, taxes. Secondary incomes serve to form the final proportions of the use of the national income.

2. stimulating - is to influence the development of enterprises and industries in the direction necessary for society. That is, the state, through the distribution of monetary funds, can effectively stimulate or hinder the development of a particular economic process.

3. control - manifests itself in tracking the distribution of GDP for the relevant funds and intended purpose.

The concept of "financial system" is used in two meanings:

1.as a set of institutions involved in monetary transactions (funds, companies, banks),

2.as a system of financial relations; while the concept of "system" implies the existence of connections.

Financial system is a combination of various spheres (links) of financial relations, each of which is characterized by features in the formation and use of funds of funds and plays a different role in social reproduction.

Each link in the financial system is a specific area of financial relations, and the financial system as a whole is a combination of various areas of financial relations, in the process of which funds of funds are formed and used.

Centralized finance - these are economic monetary relations associated with the formation and use of funds of state funds concentrated in the state budget system and government off-budget funds.

Decentralized Finance - These are monetary relations that allow the circulation of the enterprise's funds.

Thus, centralized finance is used to regulate the economy and social relations at the macro level, while decentralized finance is used at the micro level.

Financial system - it is a system of forms and methods of formation, distribution and use of funds of the state and enterprises.

If the financial system is presented as a network of institutions, then 3 levels can be distinguished:

1. Federal level (Ministry of Finance),

2. Subjects of the Federation (financial departments and financial departments under the Ministry of Finance of the region),

3. District level (district financial departments).

All of them are involved in the development and execution of the budget.

Russian financial system includes the following links of financial relations:

The state budget is the main link of the financial system. It is a form of formation and use of a centralized fund of funds to ensure the functions of public authorities. The state budget is the main financial plan of the country, approved by the Federal Assembly as a law. Through the state budget, the state concentrates a significant share of the national income to finance the national economy, social and cultural events, strengthen the country's defense and maintain state authorities and administration.

Extrabudgetary funds - these are funds from the federal government and local authorities associated with the financing of expenses not included in the budget. Formation of off-budget funds is carried out at the expense of obligatory earmarked contributions. The main amounts of deductions to off-budget funds are included in the prime cost and are set as a percentage of the wage fund.

The main ones in terms of size and significance are social funds - Pension Fund, fund social insurance, state fund for employment of the population, federal fund of obligatory medical insurance.

State loan - a special form of credit relations between the state and individuals and legal entities, where the state acts as a borrower of funds.

The state attracts additional resources by selling bonds, treasury bills and other types of government securities on the financial market.

Mobilized temporarily free funds of the population and legal entities are used to finance economic and social programs, i.e. state credit is a means of increasing the financial capacity of the state.

insurance fund provides compensation for possible losses from natural Disasters and accidents, and contributes to their prevention.

At present, along with state insurance organizations, insurance is carried out by joint-stock Insurance companies licensed to carry out insurance operations.

In the sectoral context, insurance is divided into personal insurance, property insurance, liability insurance. With the transition to market economic conditions, another branch of insurance appeared - insurance of business risks (voluntary and mandatory).

Stock market - this is a special type of financial relationship that arose as a result of the sale and purchase of specific financial assets - securities.

The task of the stock market is to ensure the process of capital overflow in industries with more high level income. Stock market participants expect to receive a higher income compared to investing money in a bank.

Finances of enterprises of various forms of ownership are the basis of the unified financial system of the country. They serve the process of creating and distributing the social product and national income and are the main factor in the formation of centralized monetary funds.

10. Describe the financial relations of the organization

Financial relations - arising in the process of formation and use of funds of special purpose funds necessary to solve the problems of socio-economic development at different levels and stages of this process.

Financial relations arise at a certain stage of social relations, one of four: production, distribution, exchange, consumption.

The relations of production and consumption are directly related to the circulation of real money in connection with the production of goods and the provision of services. But they enter into consumption as a result of distribution relations of new value through the formation of various funds of funds, after which the turn of exchange relations begins.

Consequently, financial relations arise only at the stage of distribution relations.

Financial relations have a number of features that distinguish them from other types of economic relations:

1. financial relations are of a monetary nature, they are based on money. These relations are regulated by legal methods with the help of financial law. Not all monetary relationships are financial. Money is a prerequisite for the existence of finance.

2. financial relations are of a distributive nature; they arise at the stage of the reproduction process, at which the new value in the form of profits of economic entities and the GDP of the state is distributed among funds of funds that have a special purpose. It is assumed that each subject of financial relations should receive their share.

3. financial relations provide the subjects of these relations with the formation of income and savings in the form of financial resources. Financial resources are material carriers of financial relations.

4. one of the parties to financial relations is always the state represented by legislative authorities and bodies executive power.

5. Only the state can dictate the rules and conditions of financial relations. For all legal entities (regardless of the form of ownership and organizational and legal forms), individuals and their families, the instructions (instructions) of the state are binding.

11. Types and forms of state financial control

State financial control in the Russian Federation should be considered as regulated by legal norms the activities of state bodies and local governments to control the formation, distribution, targeted and efficient use of financial resources, as well as the legality and rationality of the use of state and municipal property, which aims not only to detect, but also to prevent violations in work of controlled objects.

The forms and procedure for exercising financial control by executive authorities, local governments are established by the Budget Code of the Russian Federation, other regulatory legal acts of the Russian Federation, subjects of the Russian Federation. and local governments.

Types of financial control

State financial control- this is the control exercised by public authorities in accordance with the legally vested powers.

Municipal financial control- this is the control exercised by the control bodies of municipalities.

Departmental financial control- this is the control carried out by the control and audit units of ministries and departments within their field of activity.

On-farm financial control- this is the control exercised by the financial and economic services of economic entities. The object of control in this case is the financial activity of the economic entity.

Independent financial control is the control exercised by auditing activities. The main purpose of the audit activity is to establish the reliability of the accounting (financial) statements of economic entities and the compliance of their financial and business operations with legislative and regulatory acts in force.

Forms of financial control

Preliminary financial control carried out at the stage of drawing up, consideration and approval of draft budgets; estimates of income and expenses, financial plans of institutions, organizations, etc.

Current financial control is carried out in the process of executing the budget list, in the course of fulfilling the limits of budget obligations, estimated financial assignments, and the correspondence of the direction of expenditures to planned assignments.

Subsequent financial control carried out after the end of the reporting period and the financial year as a whole.

revision is a system of mandatory control actions for documentary and actual verification of the legality, expediency and effectiveness of business and financial transactions committed in the audited period, as well as the legality and validity of the actions of officials in their implementation.

Examination is a single control action or a study of the state of affairs in a certain area of activity of the person being checked.

Survey- this is an acquaintance of the regulatory authorities with the state certain direction or the issue of financial and economic activities of the audited economic entity.

Analysis is a kind of financial control, involving a detailed study of documentation for the purpose of an overall assessment of performance and efficiency.

In the Russian Federation, at the federal level, state financial control bodies are represented by the Accounts Chamber of the Russian Federation, the Ministry of Finance of the Russian Federation, the Ministry of the Russian Federation for Taxes and Duties, the Central Bank of the Russian Federation, the State Customs Committee of the Russian Federation, as well as control and audit services federal bodies executive power and other bodies exercising control over the receipt and expenditure of federal budget funds.

12. Factors affecting the organization of enterprise finance

The organization of finances of business entities is affected by:

The organizational and legal form of activity (determined by the Civil Code) determines the content of financial relations in the process of creating authorized capital (Articles 83,90,73,99 of the Civil Code of the Russian Federation). The property of state and municipal enterprises is formed on the basis of state and municipal property. Financial relations between the founders are built depending on the organizational and legal form of the activity of the economic entity,

Branch technical and economic features. Industry specifics affect the composition and structure production assets, the duration of the production cycle, the features of the circulation of funds, the sources of financing of simple and expanded reproduction, the composition and structure of financial resources, the formation of financial reserves and other similar funds,

Industry features that affect the organization of enterprise finances:

Differences in the technology and nature of labor in different industries, affecting the composition and structure of production assets, the level of material and technical equipment of production, the types and structure of working capital, the level and qualifications of workers, etc.,

Different duration of the production cycle and different nature of the increase in costs in the production process; these differences are reflected in the amount, structure and sources of working capital formation, relationships with banks and partners, the procedure and timing for fulfilling financial obligations to the budget, the composition of financial benefits,

The dependence of production on natural and climatic conditions that affect the quality and quantity of products, the level of costs for its production, the financial results of enterprises, etc.,

The dependence of the economic conditions of management on the possibility of obtaining rental income, the presence of which causes the need for a special mechanism of financial regulation, which can be ensured through the use of tax levers,

Differences in the economic conditions of managing industrial infrastructure sectors, which affects the sources of formation of financial resources, the forms of their use, relationships with the budget and extra-budgetary funds, etc.

Only a full account of all sectoral technical and economic features characteristic of the corresponding type of production activity will make it possible to create a financial mechanism that takes into account the needs of production, the needs of the producer and consumer of products to the greatest extent.

Budget classification

The budget classification of the R.F. is a grouping of incomes and expenditures of budgets of all levels of the budgetary system of the R.F., as well as sources of financing the deficits of these budgets, used to draw up and execute budgets and ensure comparability of budget indicators at all levels of the country's budgetary system. Classification of budget revenues RF is a grouping of budget revenues at all levels of the budget system; it is based on legislative acts that determine the sources of formation of budget revenues at all levels of the budget system.

Income groups consist of articles that combine specific types of income by sources and methods of obtaining them.

Functional classification expenditures of budgets of R.F. - grouping of expenditures of budgets of all levels of the budgetary system of R.F. reflects the direction of budgetary funds for the implementation of the main functions of the state, including financing the implementation of regulatory legal acts adopted by state authorities and state authorities of subjects, financing the implementation of certain state powers transferred to other levels of government.

Interbudgetary relations

Interbudgetary relations- this is the relationship between the authorities of the Russian Federation, subjects of the Russian Federation and local self-government. They are based on the following principles:

Balance of interests of all participants in interbudgetary relations,

Independence of budgets of all levels,

Legislative delimitation of spending powers and revenue sources between budgets of all levels,

Objective redistribution of funds between budgets to equalize the level of budgetary provision of regions and municipalities,

Unity of the budget system,

Equality of all budgets R.F.

Intergovernmental relations are regulated. Budget regulation is the process of income distribution and redistribution of funds between budgets different levels in order to equalize the revenue side of budgets, carried out taking into account the state minimum social standards.

One of the methods of budgetary regulation is the provision of direct financial assistance from a higher budget to a lower one. Forms of direct financial support: subventions, grants, subsidies, credits, loans.

In 1994, a new mechanism of interbudgetary relations was introduced in Russia. The Federal Fund for the Support of the Regions (FFSR) was created at the expense of deductions from the part of the VAT that goes to the federal budget. The regions receive transfers from this fund (transfer of funds to the budgets of the lower territorial level from the regional support fund).

Insurance features

1. risky - ensures the redistribution of the monetary form of value between insurance participants in the event of insured events.

2. preventive - involves the timely conclusion of an insurance contract and the transfer of insurance premiums in order to ensure financing of measures related to the reduction of insurance risk.

3. savings is designed to ensure the targeted formation and use of the insurance fund.

Insurance relations arise when an insurance contract is concluded between the insurer and the insured.

Insurer - this is a legal entity (state insurance companies, joint-stock insurance companies, mutual insurance and reinsurance companies) that has the right to carry out insurance activities.

Policyholder - This is a legal or natural person that has insurance relations with the insurer on the basis of a contract concluded on a voluntary basis or by virtue of law.

Insurance intermediaries:

1. insurance agents - individuals and legal entities acting on behalf of and on behalf of the insurer in accordance with the powers granted.

2. insurance brokers - legal entities and individuals duly registered as entrepreneurs and carrying out independent intermediary insurance activities on their own behalf and representing the interests of either the insurer or the insured.

Insurance classification

1. by forms:

mandatory;

voluntary.

2. by objects of insurance:

personal insurance (life and health of citizens);

property insurance (material assets and property interests of the insured, transport insurance, housing insurance);

liability insurance (civil liability insurance of motor vehicle owners);

Money circulation is the movement of money in internal circulation in cash and non-cash forms, serving the sale of goods, as well as non-commodity payments and settlements in the economy. The objective basis of money circulation is commodity production, in which the world of commodities is divided into goods and money, giving rise to contradictions between them. With the deepening of the social division of labor and the formation of national and world markets under capitalism, money circulation receives further development. It serves the circulation and turnover of capital, mediates the circulation and exchange of the total social product, including the incomes of various classes. With the help of money in cash and non-cash forms, the process of circulation of goods, as well as the movement of loan and fictitious capital, is carried out.

Money circulation is divided into two areas: cash and non-cash.

Cash circulation is the movement of cash in circulation. It is served by banknotes, change and paper money (treasury bills). In the developed capitalist countries, bank notes issued by the central bank constitute the overwhelming majority of cash circulation. An insignificant part of the issue of money (about 10%) is accounted for by treasuries, which issue mainly coins and small denominations of paper money - treasury notes.

Cashless circulation- this is a change in the balance of funds in bank accounts, which occurs as a result of the execution by the bank of the instructions of the account holder in the form of checks, plastic cards, endorsements, payment orders, electronic means payment, other settlement documents. In some countries, treasury bills, certificates, and other instruments are used in circulation.

There is a close and mutual dependence between cash and non-cash circulation: money constantly moves from one sphere of circulation to another, changing the form of cash to a deposit in a bank, and vice versa. Receipts of non-cash funds to bank accounts are an indispensable condition for issuing money. Therefore, non-cash circulation is inseparable from the circulation of cash and together with it forms a single money circulation of the country, in which a single money of one denomination circulates.

With the improvement of payment and settlement relations, the ratio between cash and non-cash spheres of money circulation also changed. Until the end of the XX century. dominated by cash payments. In modern conditions, the share of cash, especially in industrialized countries, is small, for example, in the USA it is about 8%.

Introduction 2

1. The concept of money circulation and its types 3

2. Law of monetary circulation 6

3. Money supply and monetary aggregates 9

One of the main guidelines of monetary policy is the money supply. It is this parameter of money circulation that has an impact on economic growth, price dynamics, employment, and the smooth functioning of the payment and settlement system. 9

Conclusion 12

References 13

Introduction

Money plays a key role in the economy of any state. The versatile use of money and its influence on the development of the country is largely based on the fact that products are produced by enterprises not for their own needs, but for other consumers, to whom they are sold for money. In other words, the product produced takes the form of a commodity; commodity-money relations are formed between the participants in the production and sale of goods.

As a medium of exchange, money allows society to avoid the inconvenience of barter. There is a close relationship between the amount of money in circulation and the need for it in economic circulation, the violation of which leads to the depreciation of national monetary units, disproportions in the development of production and the economy as a whole.

During the functioning of full-fledged money, the issues of changing their quantity in circulation did not attract the attention of scientists, since their excess went into treasure, and, if necessary, the money was returned to circulation.

However, with the advent of defective money, the situation has changed and supplying the turnover with the necessary money supply becomes the most important task of state policy in the monetary sphere.

World commodity-money relations, as well as in a separate country, require a certain quality of money for circulation. The amount of money needed for circulation is determined by the law of money circulation.

The law of money circulation is an economic law that determines the amount of money needed for circulation. When the amount of money in circulation exceeds the total amount of commodity prices, then inflation sets in, i.e. because money is not backed by goods, prices rise.

1. The concept of money circulation and its types

Changing the form of value (goods for money, money for goods), money is in constant motion between three subjects: individuals, business entities and public authorities.

The movement of money in the performance of their functions in cash and non-cash forms is a monetary circulation.

The beginning of the movement of money is preceded by their concentration in the subjects. In order for the movement of money to arise, it is necessary that one of the two parties needs money. The demand for money arises in the implementation of money, money is needed for circulation, payments for goods and services. Their volume is determined by the nominal gross product. Demand for money is also presented for accumulation, which appears in various forms: deposits in credit institutions, securities, official state reserves.

Money circulation is carried out in two forms: cash and non-cash.

Cash circulation - the movement of cash in the sphere of circulation and the performance of their functions (means of payment and means of circulation).

Cash is used: for the circulation of goods and services, for settlements not directly related to the movement of goods and services, namely: settlements for the payment of wages, bonuses, benefits, pensions; on payment of insurance indemnities under insurance contracts; when paying for securities and paying income on them; utility bills, etc.

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

Cash flow is carried out with the help of various types of money: banknotes, metal coins, other credit instruments (bills, bank bills, checks, credit cards). The issue of cash is carried out by the central bank. It issues cash into circulation and withdraws it when it has become unusable, and also replaces money with new samples of banknotes and coins.

In Russia, due to the huge expansion of cash turnover in the past few years, attempts have been made to limit this turnover for legal entities.

Non-cash circulation - the movement of value without the participation of cash, the transfer of funds to the accounts of credit institutions, the offset of mutual claims. The development of the credit system and the appearance of customer funds on accounts with banks and other credit institutions led to the emergence of such circulation.

Non-cash circulation is carried out with the help of checks, bills of exchange, credit cards and other credit instruments.

Non-cash money turnover covers settlements between: enterprises, institutions, organizations of different forms of ownership that have accounts with credit institutions; legal entities and credit institutions for obtaining and repaying a loan; legal entities and the population on payment of wages, income from securities; individuals and legal entities with the state treasury to pay taxes, cathedrals and other obligatory payments, as well as budgetary funds.

Money circulation is the movement of money in the internal economic circulation of the country, in the system of foreign economic relations, in cash and non-cash form, serving the sale of goods and services, as well as non-commodity payments in the economy. The objective basis of money circulation is commodity production, where the world of commodities is divided into two types of commodities: commodities proper and commodities-money. With the help of money in cash and non-cash forms, the process of circulation of goods, as well as the movement of loan and fictitious capital, is carried out.

Thus, it is possible to isolate the concept of money circulation from the process of money circulation.

Money turnover is a manifestation of the essence of money in their movement. Money turnover covers the processes of distribution and exchange. Its volume and structure are influenced by the stages of production and consumption. Long manufacturing process, requiring an increased volume of inventories, increases the cash flow associated with their acquisition. The release of labor-intensive products relatively increases the amount of money turnover in terms of wages and, accordingly, the monetary income of the population aimed at consumption.

An integral part of the money turnover is the payment turnover, in which money functions as a means of payment and is used to pay off obligations. Payment turnover is carried out both in cash and non-cash forms. Thus, changing the form of value, money is in constant motion between three main subjects: individuals, legal entities and government agencies. And the movement of money when they perform all the basic functions in cash and non-cash forms is money circulation.

Money circulation combines both the main essential characteristics of money and the mechanisms, ways of using money to promote the economic and social development of the country.

The role of money circulation, its proper organization are manifested in the following points:

Well-established economic turnover and payment and settlement system;

The ability to ensure a balance of supply and demand in the commodity market, to prevent a shortage of goods;

The nature and extent of the influence of the money supply on price increases and inflation;

Chronic lack of funds from market participants for the timely payment of wages and financing of working capital.

Money circulation is divided into two spheres: cash and non-cash.

Cash and non-cash circulation

Cash circulation- this is the movement of cash in the sphere of circulation and their performance of the functions of a means of payment and a means of circulation. It is served by banknotes, change and paper money (treasury bills).

Cash is used: to carry out the circulation of goods and services; for settlements on the payment of wages and equivalent payments; to pay for securities and pay income on them; for household payments for utilities, etc.

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

The procedure for carrying out cash circulation on the territory of the Russian Federation is regulated by the Regulation “On the Rules for Organizing Cash Circulation on the Territory of the Russian Federation”, approved by the Bank of Russia.

In accordance with the Regulation:

Cash circulation is carried out with the help of various types of money: banknotes, metal coins, credit cards, etc. (Table 1, Fig. 1);

The issue and withdrawal of money from circulation is carried out by the Central Bank of the Russian Federation;

The Central Bank of the Russian Federation regulates cash circulation in the Russian Federation;

For legal entities, bank institutions in which an account of a legal entity is opened, set a limit on the balance of cash in the cash desks of legal entities;

All means over established limits legal entities are obligated to hand over daily to bank institutions through joint cash desks at enterprises or through collection services of institutions and banks and independent services licensed by the Bank of Russia to carry out such operations;

For violation of the established procedure for legal entities and personally their leaders, serious penalties are imposed.

However, in practice, such restrictions, unfortunately, are still clearly insufficient.

Table 1

Amount, number and specific weight of banknotes and coins in circulation as of October 1, 2007

Figure 1 - Change in the amount of cash in circulation

The specificity of the methods of organizing cash circulation as an instrument of monetary policy is primarily due to the fact that, apart from the maximum amount of cash settlements between legal entities, they do not have standards. Methods as a tool are not effective enough, since their action is difficult to evaluate (track); they are not a quick response tool and rarely change. [ 15. p. 2]

In Russia, attempts are being made to limit cash circulation, because it allows you to get away from state control over the activities of legal entities and individuals.

There is a close relationship between cash and non-cash circulation: money constantly moves from one sphere of circulation to another, cash changes form to accounts in a credit institution and vice versa. Thus, cash and non-cash circulation forms a common money circulation in which a single money operates.

Non-cash circulation is the movement of value without the participation of cash, the transfer of funds through the accounts of credit institutions, the offset of mutual claims, etc.

Non-cash money circulation reflects the change in cash balances in bank accounts, which occurs as a result of the execution by the bank of the account holder's instructions in the form of checks, plastic cards, payment orders and other settlement documents.

Non-cash circulation is carried out with the help of checks, bills of exchange, credit cards and other credit instruments.

Non-cash money turnover covers settlements between:

Legal entities of various forms of ownership that have accounts with credit institutions;

Legal entities and credit institutions regarding the receipt and return of deposits and loans, as well as the payment of interest;

Legal entities and individuals for the payment of wages, interest on deposits and deposits, income from securities;

Legal entities, individuals and the state to pay taxes, fees, as well as receive budgetary funds.

In the Russian Federation, the procedure for making cashless payments is determined by the Civil Code of the Russian Federation (Article 861-885), which regulates the essence and procedure for the implementation of the main forms of cashless payments.

In practice, the following forms of non-cash payments are used: payments by payment orders; settlements by payment requests-orders; settlements by checks; letters of credit payments.

Settlements between legal entities carried out by banks and other credit organizations, and between banks - cash settlement centers of the Central Bank of the Russian Federation.

In 2008 The Bank of Russia intends to continue improving the methodological and information base in the field of payment systems, taking measures to expand non-cash payments, as well as measures to reduce cash settlements, monitoring the state of retail payments in the economy, both in cash and non-cash.