Activity

Scientific runs in the concepts of finances and credit, according to be able to the specification from the research object, happen to be characterized to become many-sided and many-leveled.

The meaning of totality from the economical relationships formed in typically the process of development, distribution and usage of finances, as money sources is widely spread. For illustration, in “the general theory of finances” you will find two explanations of finances:

1) “… Finances indicate economical relations, formation in the funds associated with money sources, in the process involving distribution and répartition of national receipts in line with the distribution in addition to usage”. This explanation is given relatively in order to the conditions regarding Capitalism, when cash-commodity relations gain universal character;

2) “Finances represent the organization associated with centralized ad decentralized money sources, economical relations relatively together with the distribution plus usage, which provide for fulfillment of the state functions and even obligations and likewise provision of typically the conditions from the widened further production”. This particular definition is delivered without showing the environment of their action. We share partly such description of finances and think expedient to be able to make some specs.

First, finances conquer the bounds involving distribution and partage service from the nationwide income, though that is a standard foundation of finances. Likewise, formation and use of the depreciation fund that is the particular part of financial domain, belongs not really to the supply and redistribution of the national salary (of newly shaped value during some sort of year), but to the particular distribution of previously developed value.

This particular latest first shows up to be a new part of value of main industrial money, later it is usually relocated to the cost price of an all sety product (that is to the value too) and after its realization, plus its set the depression fund. It is source is taken into account beforehand as a depressive disorder kind in the consistence with the all set products cost price.

2nd, main goal of finances is significantly wider then “fulfillment with the state features and obligations in addition to provision of problems for the widened more production”. Finances exist on the state degree and also on typically the manufactures and branches’ level too, and in such problems, when the many portion of the manufactures are usually not state.

V. M. Rodionova has a different placement about this subject: “real formation regarding the financial resources starts on the phase of distribution, when the value is understood and concrete affordable forms of the particular realized value happen to be separated from typically the consistence of the profit”. V. M. Rodionova makes an accent of finances, while distributing relations, when D. S. Moliakov underlines industrial foundation of finances. Nevertheless both of all of them give quite verify discussion of money, as a method of formation, circulation and usage of typically the funds of money sources, that happens of the following associated with the finances: “financial cash relations, which often forms in the particular process of distribution and redistribution associated with the partial value of the national prosperity and total sociable product, is related to the subjects involving the economy and formation and utilization of the condition cash incomes plus savings in typically the widened further generation, in the substance stimulation of the workers for satisfaction from the society social as well as other requests”.

Inside the manuals of the political overall economy we meet along with these definitions associated with finances:

“Finances of the socialistic condition represent economical (cash) relations, with the aid of which usually, in the method of planned circulation of the profits and savings typically the funds of funds sources of the condition and socialistic makes are formed regarding guaranteeing the expansion regarding the production, increasing the material plus cultural level involving the people and for satisfying other basic society requests”.

“The system of generation and usage of necessary funds associated with cash resources with regard to guarantying socialistic increased further production stand for exactly the finances regarding the socialistic modern society. And the totality of economical relationships arisen between point out, manufactures and companies, branches, regions and separate citizen in line with the movement of funds funds make economic relations”.

As coming from seen, definitions associated with finances made by financiers and politics economists tend not to change greatly.

In each discussed position there are:

1) expression of fact and phenomenon inside the definition associated with finances;

2) the definition of finances, as the approach to the creation and usage of cash of cash sources on the level associated with phenomenon.

3) Distribution of finances while social product and the value of national income, definition associated with the distributions organized character, main goals of the overall economy and economical relations, for servicing which it is used.

If refuse the particular preposition “socialistic” in the definition of funds, we may state, that it nonetheless keeps actuality. We meet with such conventional definitions of budget, without an adjective “socialistic”, in the modern economical books. We might give many of these an elucidation: “finances represent cash solutions of production in addition to usage, also cash relations appeared in the process associated with distributing values involving formed economical item and national riches for formation plus further production of the cash earnings and savings with the economical subjects in addition to state, rewarding with the workers and satisfaction of the cultural requests”. in this specific elucidation of finances like D. T. Moliakov and Sixth v. M. Rodionov’s descriptions, following the standard inheritance, we discuss with the widening in the financial foundation. That they concern “distribution plus redistribution of the value of created cost-effective product, also typically the partial distribution of the associated with national wealth”. This most current is very actual, relatively to typically the procedure for privatization and even the transition to be able to privacy and it is occasionally used in exercise in different places, for example , Great The united kingdom and France.

“Finances – are cash sources, money, their very own creation and motion, distribution and partage, usage, also economical relations, that are trained by intercalculations involving the economical themes, movement of cash sources, money blood circulation and usage”.

“Finances are definitely the system associated with economical relations, which are connected along with firm creation, distribution and usage of financial resources”.

Many of us meet with completely innovational definitions involving finances in Unces. Body and R. Merton’s basis instructions. “Finance – it is the science about exactly how individuals lead shelling out `the deficit funds resources and incomes in the definite period of time of time. Typically the financial decisions are usually characterized by the expenses and earnings which are 1) segregated in time, and 2) as a rule, it is impossible to take them into account beforehand neither by those who get decisions or any other person”. “Financial theory is made up of amounts of the particular conceptions… which learns systematically those men associated with distribution in the cash resources relatively in order to the time component; it also considers quantitative models, using the help of which the estimation, placing into practice in addition to realization of typically the alternative variants involving every financial selections take place”.

These basic conceptions plus quantitative models are used at every level of getting economical decisions, but also in typically the latest definition involving finances, we meet up with with these procession of the economic foundation: main perform of the funds is in the satisfaction associated with the people’s requests; the subjects of economical activities regarding any kind (firms, also state internal organs of every level) are directed towards rewarding this basic performance.

To the goals of our monograph, this is important in order to compare well-known explanations about finances, credit rating and investment, to decide how and how much it is usually possible to integrate the finances, opportunities and credit in the one total element.

Some researcher thing that credit could be the consisting part regarding finances, if it is discussed from your position of essence and category. The other, more numerous class proves, that the economical category involving credit exists similar to the inexpensive category of financial situation, through which it underlines impossibility of typically the credit’s existence within the consistence of finances.

N. E. Kuchukova underlined the independence of the particular group of credit and even notes that that is only the “characteristic feature the turned movement in the value, which will be not related to indication of the loan opportunities together together with the owners’ rights”.

N. D. Barkovski replies that functioning of money made an economical foundation for apportioning funds and credit because an independent category and gave rise to the credit and financial contact. He noticed the particular Gnoseological roots of science in cash and credit, as being the science about finances has business together with the research of such economical relations, which often lean upon earnings and credit.

Let’s take a discuss the just about all spread definitions associated with credit. in typically the modern publications credit appeared to always be “luckier”, then finances. For example, we all meet with the particular following definition of credit in the finance-economical dictionary: “credit will be the loan in typically the form of cash and commodity with the conditions of returning, usually, by paying percent. Credit represents a form associated with movement with the mortgage capital and expresses economical relations among the creditor plus borrower”.

This is usually the traditional classification of credit. In the earlier dictionary of typically the economy we go through: “credit is the system of affordable relations, which will be formed while the particular transmission of money in addition to material means directly into the temporal consumption, as a principle under the circumstances of returning and even paying percent”.

Inside the manual of the political economy posted under reduction involving V. A. Medvedev these definition is given: “credit, since an economical type, expresses the produced relations between the particular society, labour collective and workers during formation and consumption of the money money, under the conditions of paying existing and returning, throughout transmission of sources for the temporary usage and accumulation”.

Credit is talked about in the following way in the sooner education-methodological manuals of personal economy: “credit will be the system regarding money relations, which often is created in the process of using and breaking down of temporarily no cost cash means of typically the state budget, unions, manufactures, organizations plus population. Credit has an objective character. It truly is used for providing widened further production with the state and other needs. Credit differs from budget by the going back character, while financing of manufactures in addition to organizations by the state is happy without this condition”.

We meet with the following classification if “the course of economy”: “credit is surely an economical category, which often represents relations, even though the separate industrial businesses or persons transfer money means to each-other for secular usage under typically the conditions of returning. Creation of credit rating is conditioned simply by a historical procedure for fulfilling the affordable and money relations, the form associated with which is the amount of money relation”.

Following scientists give slightly diverse definitions of credit:

“Credit – is definitely a loan in the form of money or product, which is given to the borrower by a creditor under the conditions of coming back and paying typically the percentage rate simply by the borrower”.

Credit score is giving the particular temporally free cash sources or item as a debt for the defined words with the price associated with fixed percentage. Thus, a credit may be the loan in the form of money or commodity. At the same time of this loan’s movement, a definite relations are shaped between a financial institution (the loan is usually given by some sort of juridical of actual person, who offers certain cash as a debt) plus the debtor.

Combining every definition called above, we arrive to a concept, that will credit is supplying money capital associated with commodity as being a financial debt, for certain conditions and material accessibility under the value of firm percent rate. It presents definite economical contact between the members of the process of capital development. Necessity of the particular credit relations is conditioned, from a single side, by gathering solid quantity of temporarily free funds sources, and from the second part, existence of needs of them.

Although, simultaneously we need to distinguish two similarity to concepts: loan and even credit. Loan will be characterized by:

u Here, the debate may touch after transmission of cash and also points form one aspect (loaner) to one more (borrower): a)under the owning of typically the borrower and, with the same moment, b) under the problems of returning equal amount or equal quantity and top quality of the issues;

o The lending of money might bear no curiosity;

o Any particular person may take portion in it.

Along with the difference together with loan, credit, which is somehow a personal occasion of typically the loan, represents:

to One side (loaner) gives to the second one (borrower) only money, and _ for temporal usage;

o That may not carry no interest (if the assignment does not foresee something);

o Inside creditor is not any man or woman, but a credit organization (at primaly, banks).

So, a new credit is typically the bank credit. To be able to our mind, it is not right to make use of “credit” in addition to “loan” as typically the synonyms.

Banking crediting is the marriage of relations involving bank (as a new creditor) and the borrower. These associations touch upon:

a) Giving a certain amount of money for the borrower for distinct purpose (though, many of us meet with typically the so-called free credits, aims and objects of crediting are usually not appointed throughout the assignment);

b) Its opportune coming back again;

c) Getting percentage rate from the borrower for employing the sources underneath his/her disposal.

The essential foundation involving the credit essence as well as important component is existence regarding trust between the two sides (in Latin “credo”, coming from which comes the term “credit”, means “trust”).

From the position of circulation regarding money forms (in the abstraction, historic process of formation economical relations and social budget in addition to banking systems portrayed by them) evaluating different definitions of finances and credit score, the paradox summary appears: credit is the private occasion of finances. And really, from the place of motion of the money forms, funds represent the creation and use of typically the funds of money signifies. Very often such movements are happy without returning, nevertheless sometimes, it is certainly possible to supply loans from the pay up the investment projects of additional needs. Also, when a manufacture or perhaps corporations use their own cash funds plus we mean typically the finances of commercial subject, such utilization may be realized since within the manufacture or corporation (there is definitely no subject concerning returning delete word returning of the usage), so gratis under conditions of returning. This latest is named commercial form because of transmitting the resources to others, nevertheless in this occasion, it is the element involving financial system with the manufacture and corporation.

From the level of cash means activity, main character involving credit is the particular process of creation and usage involving the funds of cash means under the conditions of returning and, usually, taking the value-percentage. If gating the credit value won’t take place (even in the exceptional occasions), according to the movement form, credit turns into a private celebration of finances, because through the net economical funds (consequently coming from the state budget) the loans which bear no hobbies may be used. If gating credit value takes spot, by the look form, credit is definitely discussed to be financial modification.

By the historical level of view, funds (especially in typically the sort of the state of hawaii budget) and credit rating (beginning with usury, later commercial plus banking) were establishing differently for considering credit to always be the section of funds. Though, through the genetic-historical point of look at, previous loaners, ahead of giving loan, wanted gathering the permanent capital not coming back, that is the net monetary foundation. The banking institutions analogously needed attention with the important personal capital for influxing the consumers’ means and then for getting higher percentage rate beneath the conditions regarding returning. Herewith, exactly on the economical basis, in typically the type of financial account (which later partially becomes loan fund) part of the bank money seems to be the booking (insurance) part of the fund, which in turn by nature is financial and not really loan. So in spite of the essential differences between finances and credit form the genetic-historical point associated with view, credit is apparently formed from budget and represent their particular modification.

From the particular essential position regarding expressing economical associations of finances and even credit, we fulfill with cardinal distinctions between both of these categories. Which mostly expressed by the distinction of the activity forms notwithstanding these people are returnable or perhaps not. Finances express relations in the areas of distribution and redistribution of community product and part of the domestic wealth. Credit expresses distribution of typically the appropriate value just in the section regarding percentage given for loan, while based to the financial loan itself, an just a temporal supply of money sources takes place.

Herewith, you will find a lot of common between the budget and credit as from the imperative point of see, so based on the form of movement. Simultaneously, there is a significant distinction among finances and credit rating as in the utilization of, so in the particular form too. Relating to this, there must be the kind of typically economical category, that will consider finances and credit as a new total unity, and even in the range of this class itself, the parting of the specific essence of the particular finances and credit would come about.

Money of the dollars means is frequent towards the researched economical categories. It calls for place in any separate system involving finances and credit score, which has been touched upon through the analyses regarding defining finances and credit. Word combo “funding of the cash sources (fund formation)” reflects and defines exactly essence and form of cost-effective category of additional general character, those of finances and credit rating categories. Though within the in economical text messaging and practice, it is very uncomfortable to make use of a termini, which consists of 3 words. Also, “unloading” with an info hardens greatly their influxing into the circulation during the particular conditions of their strict substantiation and thoroughness.

In the particular discussing context we all consider:

1) large and narrow knowing of economical class of the finances;

2) discussing finances inside narrow understanding under general traditional which means;

3) discussing financial situation, as funding from the cash means, on wide understanding, which concerns finances : in narrow meaning and credit – in complete meaning.

Termini “funding” as well as its equivalent “fund formation” are used by simply us as the particular purposeful structuring involving cash means, that is based on a couple of poles – accumulation pounds sources (gathering) and its usage with regard to definite purpose in the way associated with financing and crediting.

We now have established the new termini : “finance-investment sphere” (FIS). Analyses about interrelation of finances in addition to credit created by us give us the opportunity of proving, that will in the particular termini, the term “financial” is utilized together with the meaning regarding funding cash resources, its purposeful building. In this process we consider in the same time financial, credit and investments’ economical types.

Let’s sum upwards middle outcomes of discussing new concept instructions “finance-investment sphere” and even discuss its investment consisting parts.

The concept “investments” has been brought into typically the native economical technology in the West. Inside the Soviet affordable science they intended for a long time used in the spot “investments” the termini “capital placement”, which usually expressed the usage of the industrial factors in the world of real industrial activities during realization of capital assignments. From one glance, this termini inside its concept is usually identical towards the “investments”, consequently it is easy to use them as synonyms. Though the termini “investments” and “investing” possess the advantage in the direction of the termini “capital placement” from linguistic and philological points of view, since they are expressed with one word. This is definitely not only economical and comfortable in the act of working along with the termini “investment” itself, but furthermore it gives a chance of termini creation. More concretely: “investment process”, “investment domain”, “finance-investment sphere” – all these termini are more satisfactory.

Changing native cost-effective termini with international ones is purposeful, whether it really things (by keeping parallel using the local termini for the inheritance). Though we must not modify native economical termini into foreign types all together, when by ordinal standard language easy to be able to explain private plus narrow concrete operations and elements acquire their own termini. The “movement” of those termini is authorized within the narrow professional bounds, but their “spitting out” in to the economical scientific research may turn inexpensive language into the particular tangled slang.

Why don’t discuss termini instructions “investment” and “capital placement’s” usage throughout the economical materials.

Investments are keeping of funds into typically the main and circulation capital for the purpose of buying profit. “Investments in material assets — are the placements of funds into typically the mobile and true estate (land, structures, furniture and therefore on). Investments inside financial assets will be the placements involving funds into the particular securities bank balances and other economic instruments”.

We no longer meet with the particular termini “investments” in the earlier affordable dictionary, but all of us meet the combined termini “investment policy” – the union with the industrial choices, which guarantee main directions of the capital investments, the particular activities of their very own concentration in the particular determinant suburbs, on which the getting of planned costs of development of the society creation is depended, managing and effectiveness, having more and more creation and profit associated with the national income for every lost Ruble”. For today, within the most actual definitions, the money investments are bounded only by monetary means, when not sole financial, but in addition typically the investment of herbal, material-technical and educational resources occurs. Time resources take an actual place inside the investment method. They themselves satisfy a investment procedure.

A confident side involving the discussed meanings is that they will connect investment insurance plan and capital positions (investments):

– cost-effective development according in order to the key instructions to the attentiveness;

– providing great rates of cost-effective growth;

– increasing an economical effectiveness, which usually is expressed:

a) by growing typically the throw off with the production and national income for each lost Ruble;

b) by fulfilling the branch structure involving the investments;

c) by improving their very own technological structure;

d) by optimization of their further production structure.

Compared together with such definition associated with the investments (capital placement) the meaning of investments in typically the dictionary attaching the particular “Economics” seems in order to be unimproved: “investments – the charges of gathering manufacturing and industrial indicates and increasing substance reserve”. Within this description current expenses (production expenses) are merged with the investment decision (capital) expense. Likewise, not the investment decision expenses but (though the investments are usually followed by typically the appropriate expenses) precisely advancing. It varies from the expenditures by that typically the means (means) happen to be put by going back the advanced values, also, under the conditions of development, to which the particular concept-advanced capital is definitely corresponding. the progressing may be understood within the money, natural-material and informational kinds.

Except the termini “investments”, there are usually two more termini related with the investment. They are usually shown below.

“Human capital investment” instructions any activity provided for rising typically the workers labour productivity (in the way of growing their own qualification and developing their abilities); at the expenses involving improving the workers’ education, health plus raising the range of motion of the working forces”. It is very useful to be able to use the described termini, though it requires one correction: the human capital investments tend not to concern only personnel, but also the servants, representatives associated with every type of labour.

“Investment commodity, money goods – some sort of capital. ”

In the official manuals of political economic system of the reformation time the funds investments are talked about as “expenses regarding creating new major funds and widening, reconstruction and reviving the active ones”. In this description the investments (capital placements) during parting in the forms (types) of further generation in the main money are bounded simply by main money (without increases associated with the circulation money and insurance reserves):

a) creating new ones;

b) widening;

c) reconstruction;

d) renewing.

Also, the concept of the particular industrial gathering shows up, at the expenses of widening involving basic, circulation money and also insurance reserves takes place”.

You’ll meet under the definitions regarding investments from “the course of economy”: the investments are “placements of finance into the standard capital (basic indicates of production), supplies, also other economical objects and steps, which request long-termed influxing of material and cash means. “According to the division of capital into actual and money forms, the investments as well must be split into material in addition to cash investments”.

These people apportion investment asset, to which belong industrial and nonindustrial building objects, vehicles purposed for changing or widened specialized park and the particular furniture, increasing reserves as well as others.

“They phone the whole investments associated with production an purchase product, that is directed towards keeping in addition to increasing the standard money (basic means) and even reserve. Total opportunities consist of two parts. One involving them is referred to as typically the depreciation; it symbolizes important investment sources for compensation regarding renewal till the amount of before industrial consumption, wearing out in addition to repairing of typically the basic means. Next consisting section of the total investments is showed by net opportunities – capital opportunities for the purpose of increasing fundamental means”. Depreciation is definitely not a reimbursement resource of wearing the basic funds out, however it is the purposeful financial source associated with such resources.

Man capital investment will be “a specific kind of investments, generally in education in addition to health protection”.

“Real investments are the investments in the affordable branches and likewise, they are kinds of economical activities, which in turn provide influxing the increases of actual capital, that will be increasing material values from the industrial means”. We can agree along with such definition with one specification that material and nonmaterial values too fit to the actual capital (wealth), therefore science-researching experimental-construction results, various information, schooling of he personnel as well as others. Such support as organization associated with the excitable game titles, also the assistance of redistribution cultural wealth from one exclusive person to another (except charity).

“Financial assets represent keeping of finances into the gives, obligations, promissory information, other securities in addition to instruments. Such purchases, of course, do not give increases of the genuine material capital, but they help getting revenue, consequently at the expenses of changing the course of the particular securities inside the moment of speculation, or even distinguishing the training course in different places of sell and purchasing”. We talk about wholly such description, hence it follows that financial assets (if it will be not followed by simply real investments while a result) carry out not increase true material wealth and real nonmaterial prosperity. According to this kind of context, the manifestation below is essential: “we must distinguish economical investments, which signify placement of typically the funds in the methods of selling plus purchasing the stock options for the purpose of getting revenue and financial purchases, which become money and real, changed to real actual capital. ”

Within the “economical course” offered before long and even short-termed investments will be separated. Recognizing the particular existence of the particular bounds between these people, the authors assign, short-termed investments to “one month or perhaps more” investments. In the event that we get such conditioned criteria, that will we can call up the investments which in turn overcome the phrases of some several weeks, long-termed ones, which is very doubtful and we don’t agree along with it. A long-termed character of the particular fund placement is usually a significant characteristic of the assets (short-term doesn’t mix with the concept of investments). Principally, it might be far better to point out there quick compensative, center termed compensative and long-termed compensative assets:

– less next 6 months instructions quick compensative;

instructions from 6 several weeks to the year plus a half – middle termed compensative;

– more then this year and some sort of half – very long termed compensative.

We stopped at the description of the investments in the capital operate “economical course” regarding the special objective, as, within it typically the author tried to discuss the idea of investments systemically and quite entirely, herewith the publication is published just now.

We’ll return to be able to the topic the classification economical category of “investments” in different guides in the following chapter. The definitions given here will be quite enough intended for having a notion of the levels of lighting up typically the given category found in the economical books.

What conclusions might be made according the meaning of the pointed out economical category inside the published works, except the built notions and specs?

There is quite deeply, concretely plus thoroughly defined the concept of “investments”, different definitions in the economical literature; but mainly in every works about the investments discussed by us until now, there is usually not opened the essence of investments as an cost-effective category. In every monograph, whether or not that has a subject investment, as an economical category, right now there is given the particular definition, concept regarding investments. But, like the Academician Vasil Chantladze explains, “a concept is a debate, which proves a thing about the differentiating feature of typically the researched object. A concept outside of much essential characteristic characteristics represents only one, and even essential within it is just – definition”.

But the categories are much wider; it is usually “a key, typically the most fundamental principle of every science”. Economical categories in theory represent real, objectively existed productive relationships. A category may be the defining of occasions of existed heroes, connections, relations with the objective world. Normally, any educational procedure is fulfilled from the categories, which offer opportunities for splitting the processes in addition to occasions semantically, with regard to expressing the explanations of the subject in addition to realize their particular peculiarities and inexpensive relations of a material world.

The goal is exactly to be able to substantiate investments instructions as an cost-effective category and likewise, as being a financial type in the narrow understanding.

Here we implement for another manual thesis created by the academician Vasil Chantladze: “every financial relationship is an economical one and each financial category will be and economical 1, but not every inexpensive relation and inexpensive category is economical relation and monetary category”.

In typically the process of identifying the investments, it is important to take in head the sides of sources, expenses and profits, because investment, through one side, is usually the result associated with the manufacture’s exercise, and, from another one, – the part of income, which, in this case, is not necessarily useful for usage.

An additional occasion: it will be advisable to talk about investments in two elements: like a category regarding reserve and circulation, which will reflect exactly the network between “placement regarding funds” and “investments”.

As we’ve stated above, a little bit ago, on the well-known Soviet literature the ideas of “the keeping of funds” and “investments” were accepted to be the synonyms and concerned being investment involving sources for additional production of the main funds and development of the turnover funds. We talk with such understanding associated with the concept of “investment” (here, they separate about three types of the expense expenses: investments inside of the basic funds of investments, purchases of the house creating and investments inside the reserves) inside the modern inexpensive publications and this is mostly employed within the macro quality throughout a statistical examine of economical techniques. With this concrete occasion investment is the particular category of arrange.