Exercise 1
Question 1. Finance is:
1. economic category;
2. economic phenomenon;
3. subjective instrument of a market economy;
4. cash.
Question 2. Finance as a phenomenon is:
1. cash;
2. unity of object and subject;
3. unity of at least two subjects, an object and relationships;
4. unity of at least two subjects, an object, relations and the state.
Question 3. How does the economic category of finance express:
1. relations between the systematic formation and use of funds of monetary resources of economic entities;



Question 4. Finance as a subjective cost instrument is:
1. funds of economic entities;

3. a conscious mechanism for the formation and use of monetary funds;
4. mechanism for making decisions regarding the formation and use of monetary funds.
Question 5. The main meaning of finance is:
1. in ensuring the reproduction of material goods;
2. in the redistribution of funds between legal entities;
3. in the redistribution of funds from those who have property to non-producing individuals;
4. in ensuring trade turnover.
Task 2
Question 1. The financial system of society is:
1. a set of spheres expressing the relationships of subjects regarding changes in a monetary object;
2. the totality of funds of all entities;
3. specific form of implementation of the state budget;
4. the totality of the country's budgets.
Question 2. Which feature of the classification of finance is not one of the main ones?
1. subjective;
2. object;
3. formal;
4. social.
Question 3. What is not the function of the financial system?
1. distribution of monetary resources between subjects of society;
2. control of the movement and use of financial resources of the subjects of society;
3. redistribution of monetary resources between subjects of society;
4. preventing losses of company entities.
Question 4. The subject financial system does not include:
1. finances of citizens;
2. formal finance;
3. international finance;
4. finances of organizations.
Question 5. Name the most quantitatively significant area of ​​finance:
1. public finances;
2. international finance;
3. finances of citizens;
4. finances of organizations.
Task 3
Question 1. What is “politics”?
1. special activities of people to protect the interests of society;
2. the concept of relations to protect and realize the interests of some subjects as opposed to the interests of other subjects of society;
3. special activities of state authorities;
4. special activities carried out to improve the well-being of the people.
Question 2: What is not the reason for the existence of politics?
1. variety of forms of ownership;
2. diversity of needs of economic entities;
3. limited life values;
4. division of society into many economic entities.
Question 3. Arrange the following types of policies in order of expansion: financial (1), revenue (2), financial regulation policy (3), socio-economic (4).
1. 1, 2, 3, 4;
2. 3, 2, 1, 4;
3. 2, 3, 4, 1; 1
4. 4, 3, 1, 3.
Question 4: Which of the following policies is not a core policy?
1. individual;
2. state;
3. international;
4. industry.
Question 5. Informal politics is:
1. policies implemented by citizens;
2. unspoken policy;
3. prohibited policy;
4. policies implemented by legal entities.
Task 4
Question 1. Financial management is:
1. the totality of all bodies and organizations involved in financial management;

3. a scientifically based system for managing financial relations, value flows and funds of the organization;
4. system of interaction of financial relations, flows and funds of funds.
Question 2. The objects of financial management are not:
1. monetary funds;
2. cash flows;
3. categories and financial leverage;
4. budgetary relations.
Question 3. The reasons for financial management do not include:
1. the subject’s desire to lead;
2. presence of an economic entity (organization);
3. the action of commodity-money relations;
4. variety of forms of ownership.
Question 4. Strategic financial management is carried out by:
1. top officials (owner) of the organization;

3. control structures;
4. all members of the organization.
Question 5. Financial management tactics are dealt with by:
1. control structures;
2. second parties (performers);
3. top officials (owner) of the organization;
4. all members of the organization.
Task 5
Question 1. Financial forecasting is:
1. subjective activity of people in creating forecasts;
2. a mechanism for predicting the state of finances of a particular economic entity in the future, for one or another perspective;
3. a scientifically based system for managing financial relations, value flows and funds of the organization;
4. the process of developing and adopting targets for the financial activities of economic entities.
Question 2. Forecasting methods do not include:
1. extrapolation;
2. modeling;
3. program-targeted;
4. method of expert assessments.
Question 3. Planning is:
1. the totality of all bodies and organizations involved in financial management;
2. a set of objects and subjects of financial management;
3. a scientifically based system for managing financial relations, value flows and funds of the organization;
4. subjective process of developing and adopting targets for the financial activities of economic entities.
Question 4. Financial planning objects do not include:
1. monetary funds;
2. cash flows;
3. economic categories;
4. budgetary relations.
Question 5. Does not engage in financial planning:
1. citizen;
2. designer;
3. Minister of Finance;
4. entrepreneur.
Task 6
Question 1. Give the correct definition of financial control:
1. one of the stages of financial management;
2. a set of activities of subjective activity of people for observation, comparison, verification and analysis of the movement of monetary resources;
3. a set of actions to verify the activities of business entities;
4. form of implementation of the control function of finance.
Question 2. What is not one of the main reasons for the need to control socio-economic processes?
1. lack of 100% probability in a certain development of processes;
2. the importance of preventing the occurrence of crisis situations;
3. the desire to develop the success of a specific activity;
4. identification of financial irregularities.
Question 3. Public financial violations do not include:
1. misuse of financial resources;
2. unprofitable activities of organizations;
3. secret borrowing of funds of some entities from others;
4. corruption.
Question 4. What is not the main task of financial control?
1. checking the expenses of all parts of the financial system;
2. compliance with accounting and reporting rules;
3. preventing theft and identifying reserves for the effective use of funds;
4. checking the correctness and timeliness of income receipt.
Question 5. What is not the main type of financial control?
1. preliminary control;
2. comprehensive control;
3. current control;
4. final control.
Task 7
Question 1. In a real economy, the financial market acts as:
1. economic phenomenon;
2. economic category;
3. value instrument;
4. institutional game.
Question 2. The financial market is:
1. system of purchase and sale of monetary (financial) instruments;
2. mechanism of monetary circulation;
3. system of economic relations;
4. market circulation mechanism.
Question 3. The financial market is not classified by:
1. objects;
2. subjects;
3. form of functioning;
4. sizes.
Question 4. What is not a function of the financial market?
1. mobilization (accumulation) of available funds;
2. issue of financial instruments;
3. distribution of free financial resources;
4. redistribution of financial values.
Question 5. The financial market does not include:
1. loan market;
2. gold market;
3. securities market;
4. insurance market.
Task 8
Question 1. The economic essence of insurance is that it:
1. economic relations regarding the formation and distribution of monetary funds;
2. joint participation of policyholders in the formation of funds;
3. relations regarding the formation of a special insurance fund and its use for payments for insurance events;
4. monetary relations regarding the distribution of insurance resources.
Question 2. An insurer is an entity that:
1. participates in insurance relations;
2. engages in insurance activities on the basis of a license;
3. concludes insurance contracts;
4. concludes insurance contracts and participates in the creation of insurance funds.
Question 3. Insurable interest is:
1. interest of an individual and legal entity in insurance problems;
2. the amount of insurance liability determined by the insurance contract;
3. a measure of material interest in insurance, expressed in the insured amount;
4. the amount of the insurance premium paid by the policyholder to the insurer.
Question 4. State off-budget social insurance funds do not include:
1. Compulsory health insurance fund;
2. Federal Environmental Fund;
3. Pension Fund of Russia;
4. Social Insurance Fund.
Question 5. The characteristics of voluntary insurance include:
1. setting tariffs through an agreement between the insurer and the policyholder;
2. establishment of insurance rates according to a unified state methodology.
3. the possibility of using income for other commercial activities;
4. determination of insurance rules by government agencies.
Task 9
Question 1. Credit is:
1. economic phenomenon;
2. economic category;
3. subjective cost management tool;
4. mechanism for using monetary resources.
Question 2. How does the economic category of credit express a set of relations:
1. regarding the mobilization and use of temporarily available funds;
2. regarding the use of borrowed funds by various economic entities;
3. regarding the withdrawal of funds from economic entities;
4. related to the formation, distribution and use of funds of funds.
Question 3. What is a loan fund?
1. the totality of funds transferred by one economic entity to another on a gratuitous and irrevocable basis;
2. the totality of funds withdrawn by one economic entity and directed to the needs of another economic entity;
3. a set of funds transferred for a fee in the form of interest for temporary use on a repayable basis;
4. a set of temporarily free funds of economic entities.
Question 4. A mandatory objective element of a loan is not:
1. creditor;
2. borrower;
3. loan;
4. principles of credit.
Question 5. The principles of credit do not include:
1. security;
2. paid;
3. urgency;
4. repayment.
Task 10
Question 1. VBF are monetary funds that provide:
1. continuity of the process of social reproduction;
2. meeting the needs of citizens;
3. meeting the specific needs of economic entities of society;
4. expansion of production.
Question 2. VBFs express the relationship:
1. between economic entities regarding the formation and use of part of the society’s product;
2. between non-state legal entities and the state regarding the formation and use of a part of the society of another product;
3. between subjects of society regarding the formation and use of part of the social product;
4. between citizens and the state regarding the formation and use of part of the social product.
Question 3. VBFs are not classified by:
1. status;
2. intended purpose;
3. cost;
4. by duration of action.
Question 4. State WBFs do not exist:
1. subjective;
2. federal;
3. regional;
4. local.
Question 5. There are no VBFs:
1. economic;
2. political;
3. spiritual;
4. social.
Task 11
Question 1. Institutional finance acts as:
1. economic category;



Question 2. What relationships do institutional finance express?
1. relations between the systematic formation and use of the fund of monetary resources of economic entities;
2. relations regarding the formation and use of funds;
3. relations regarding the circulation of monetary resources;
4. relations regarding the functioning of loan capital.
Question 3. As a subjective financial instrument, institutional finance is:
1. monetary fund of economic entities;
2. plan of income and expenses of economic entities;
3. mechanism for the formation and use of the monetary fund;
4. coordinated process of functioning of the state fund.
Question 4. Name the main element of institutional finance:
1. financial market;
2. state enterprises;
3. budget system;
4. budget of physical economic entities.
Question 5. Methods of redistribution of monetary resources do not include:
1. straight;
2. indirect;
3. hidden;
4. vowels.
Task 12
Question l. The budget should be considered as:
1. economic category;
2. economic category and subjective cost instrument;
3. subjective financial instrument of a market economy;
4. subjective method of economic management.
Question 2. What relationships does the budget express?
1. relations regarding the systematic formation and use of the fund of monetary resources of economic entities;
2. relations regarding the formation and use of funds;
3. relations regarding the circulation of monetary resources;
4. relations regarding the functioning of loan capital.
Question 3. What is not the characteristic properties of the budget?
1. focus;
2. spontaneity;
3. planning;
4. scientific nature.
Question 4. Which budget outcome seems most favorable?
1. equality of income and expenses;
2. income exceeding expenses;
3. expenses exceeding income;
4. failure to meet the budget for income and expenses.
Question 5. The state budget expresses the relationship:
1. between government bodies and economic entities regarding the formation and use of public financial resources;
2. between economic entities regarding the use of public financial resources;
3. economic entities regarding the formation and use of monetary funds;
4. economic entities regarding the formation of state financial resources.
Task 13
Question 1. By budget device we mean:
1. organization and principles of building the budget system of the Russian Federation;
2. organization of building a budget system;
3. budget mechanism of the Russian Federation;
4. mechanism for drawing up and executing the budget.
Question 2. What does not apply to the principles of a budget device?
1. unity;
2. balance;
3. independence;
4. self-sufficiency.
Question 3. Protected budget items include:
1. current budget items;
2. budget items subject to mandatory implementation;
3. budget items not subject to sequestration;
4. items of budget expenditures approved for mandatory execution by law.
Question 4. What is not included in the factors that determine the unity of the budgets of the Russian Federation?
1. unity of the administrative and political system of the Russian Federation;
2. unity of the legal system;
3. unity of budget classification and regulatory documents;
4. unity of territorial-national interests.
Question 5. What is not an element of the anti-deficiency mechanism?
1. change in tax rates;
2. mechanism for sequestration of expenses;
3. establishing deficit limits;
4. procedure for covering the deficit.
Task 14
Question 1. The purpose of the functioning of finances of commercial organizations is:
1. production of products that satisfy the needs of economic entities of society;
2. making a profit by the owners of organizations;
3. providing financial resources to employees;
4. elimination of unemployment.
Question 2. The principle of commercial calculation of organizations is not:
1. profitability;
2. competition;
3. independent financial control;
4. financial responsibility and interest.
Question 3. What does the principle of economic independence of commercial calculation mean?
1. the organization independently selects sources of income;
2. the organization independently determines the organizational structure;
3. the organization independently determines the directions for using funds;
4. The organization independently determines the scope of its activities.
Question 4. What does not belong to the own resources of commercial organizations?
1. depreciation charges;
2. funds received from an additional issue of shares;
3. funds received from the placement of bonds;
4. accounts payable.
Question 5. Non-current assets do not include:
1. fixed assets;
2. intangible assets;
3. long-term financial investments;
4. cash.
Task 15
Question 1. Finances of individuals are:
1. abstract concept;
2. economic category;
3. the phenomenon of a market economy;
4. subjective management tool.
Question 2. What are citizens’ finances as an economic category?
1. funds of the population;
2. relations between economic entities regarding the formation and use of monetary funds;
3. relations between economic entities regarding the formation and use of funds of individuals;
4. mechanism for the functioning of the population's financial resources.
Question 3. The purpose of citizens’ finances is to:
1. ensuring personal development;
2. financing human reproduction;
3. financing human development and reproduction;
4. creating personal cash savings.
Question 4. The functional mechanism of citizens’ finances consists of:
1. use of funds;
2. formation and use of monetary funds;
3. formation, use and reproduction of monetary funds;
4. formation, use, reproduction and interaction of monetary funds.
Question 5. Indicate a specific investment fund for citizens’ finances:
1. insurance fund;
2. fixed production assets;
3. labor fund;
4. working production assets.
Task 16
Question 1. International finance is:

Question 2. What is international financial policy?

Question 3. What is a financial asset on the world market?

Question 4. What is not characteristic of market

Today finance

As economic category

Finance how

centralized funds, decentralized.

The object of finance is financial resources,

The term “finance” comes from the Latin finis – end, end, finish. In the Ancient World and the Middle Ages, in monetary relations arising between the state and the population, the word “finis” meant final settlement, completion of monetary payment. Persons who paid contributions to various government bodies received a document - fine. From the name of this document came the Latin term “financia”, which meant cash payment. The long process of development of commodity-money relations has changed the content of the phenomenon of finance.

Today finance- this is an objective economic phenomenon, which is a system of formation, distribution, redistribution and use of monetary funds of subjects of society. On the one hand, this phenomenon acts as an economic category, and on the other, as a subjective cost instrument of activity.

As economic category Finance expresses economic relations regarding the production, distribution and use of gross domestic product and national income. These relationships are manifested in the creation and use of trust funds of funds by various economic entities (state, business entities, interstate organizations, individuals, etc.).

Finance how subjective cost instrument functioning of economic entities form a specific mechanism for making decisions regarding the processes of formation and use of monetary funds.

Finance appears in monetary form, but not all monetary relations are financial. Monetary relations turn into financial ones when, as a result of the production of goods and the provision of services during their sale, funds of funds are created.

Cash funds created at the level of the state and local governments are called centralized funds, and monetary funds created at the level of economic entities, households - decentralized.

The object of finance is financial resources, representing a collection of funds of funds at the disposal of business entities, the state, and households. The sources of financial resources are:

– at the level of business entities – profit, depreciation, income from the sale of securities, bank loans, interest, dividends on securities issued by other issuers;

- at the population level - wages, bonuses, wage supplements, social payments made by the employer, travel expenses, income from business activities, profit sharing, transactions with personal property, credit and financial transactions; social transfers, including pensions, benefits, scholarships; consumer credit;

- at the level of the state, local governments - income from state and municipal enterprises, income from the privatization of state and municipal property, income from foreign economic activity, tax income, state and municipal credit, issue of money and income from the issue of securities.

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Specialty 050509 “Finance”

Questions for the “Finance” section

The concept of finance, its necessity

Concept "finance" covers a wide area of ​​economic relations related with distribution social product in monetary form.

The external manifestation of finance in economic life occurs in the form of the movement of funds among different participants in social production. On the surface of the phenomena, this movement represents the transfer of amounts of money from one owner to another in the form of non-cash or cash payments. This feature was manifested in the origin of the term “finance”, from the Latin “finis” - end, finish, end of payment, settlement between subjects of economic relations (originally in Ancient Rome - between the population and the state). Later, the term was transformed into “finansia”, which was used in a broad sense as a monetary payment, and then as a set of income and expenses of the state and any economic units and their complexes.

Hence, obviously, finance includes that range of operations that are carried out in the form of cash payments.

As a rule, monetary payments are made among themselves by various entities participating in social production. At the same time, money serves the entire process of activity of market subjects both in the areas material production And commodity circulation, and in non-production sphere activities.

The concept of “finance” is often equated with money. This is due to the fact that at the level of public perception, money and finance are difficult to distinguish, although in essence they are different economic phenomena.

The functioning of money as an economic instrument differs from finance, both in essence and in purpose. Feature of money is that they represent a universal equivalent with the help of which the labor costs of associated commodity producers are measured. The main purpose of money expressed in their functions: measures of value, means of circulation, means of payment, means of accumulation and savings, world money.

At the same time, the presence of money in the economic system is a prerequisite for the functioning of finance. In other words, finance cannot exist without money. However, this does not mean that money is the cause of the emergence of finance.

Unlike money, finance always an intangible thing.

Feature of finance is that it is, first of all, an instrument for the distribution and redistribution of the gross domestic product.

The main purpose of finance is to provide for the various needs of subjects of society by creating cash income and funds. This is evidenced by all financial transactions performed.

The reason giving rise to the emergence of finance, is the need of the state and various entities for resources to support their activities.

For example: Subjects of non-production activities , which includes the entire social sphere: education, healthcare, culture, art, as well as areas of management, defense, etc., cannot function if they do not have the necessary amount of funds to meet their needs related to the fulfillment of public purposes.

This need for resources cannot be satisfied without finance either in the economic sphere, or in the social sphere, or in the sphere of government activities: management and defense. This is due to the fact that only with the help of finance is the distribution of value among the subjects of the reproduction process possible, that is, only through the financial distribution of the value of the gross national product does each participant in social reproduction receive its share in the created value and the movement of funds receives a target designation.

In a market economy, the range of transactions of individuals mediated by the movement of funds is expanding. In particular, citizens, engaged in various types of entrepreneurial activities without forming a legal entity, having a personal sector, household, receive income that serves as a source of covering their various needs, including those of a socially significant nature. Citizens pay various types of taxes and fees to the state budget.

Hence, the range of transactions under consideration is accompanied by the movement of funds from one owner to another, and is carried out in the form of cash payments. Therefore, these operations are to financial transactions, and the process of cash flow itself is called finances.

Based on the above, we can formulate a definition: Finance is a set of special economic relations that arise in the process of distribution and redistribution of the value of a social product, as a result of which monetary income, savings and funds are generated and used by participants in reproduction to satisfy their various needs.”

Specific signs of finance

monetary character;

distributive nature;

always expresses the one-way movement of the monetary form of value;

mandatory formation and use of financial resources.

A) On the surface of social processes, finance manifests itself through the movement of funds. Financial transactions are necessarily accompanied, firstly, by the transfer of funds from one owner to another, and secondly, by the establishment of their target designation. Consequently, finance differs from other economic categories in that it is a derivative of the monetary form of value . When performing financial transactions, their monetary shell is visible, behind which the movement of value is hidden. That is, the economic basis for the functioning of finance is the movement of value in its monetary form. This circumstance allowshighlight their monetary nature as an important specific feature of finance as an economic category.

B) Financial transactions manifest themselves not only as the movement of the monetary form of value, but also contain at their core its distribution. For example, the financial transaction “payments to the budget” is carried out by distributing the created value on the basis of isolating from it that part that is transferred to the budget in the form of various types of taxes. In reality, there is a cash payment from the subject to the state.

Consequently, in the system of monetary relations, finance is limited only to the distribution process. Therefore, the next specific feature of finance as an economic category is its distributive nature.

C) The distribution processes carried out by finance cover not only the value of the gross domestic product, but also extend to the entire gross national product, as well as part of the national wealth.

A feature of financial transactions, and therefore finance, is the fact that the movement of funds occurs unilaterally, that is Finance always expresses the one-way movement of the monetary form of value, which also characterizes its specific feature.

D) Not only finance, but also wages, price, credit, etc. take part in the distribution of the value of a social product. All these economic categories have different operating principles, each of them has its own characteristics, its own social purpose. On the basis of financial relations, a part of the value is isolated in the form of savings and specific forms of net income are isolated as part of gross income. These processes of distribution of the value of the gross domestic product are accompanied by the formation of special types of resources. Their peculiarity is that they are formed at the disposal of various entities or the state as a result of the targeted separation of funds and are intended for further use in the interests of meeting social needs. Consequently, when distributing the value of the gross domestic product with the help of finance, there is necessarily a movement of funds that take special forms of resources - income, deductions, receipts, savings, which together can be called financial resources. Hence, the next specific feature of finance as an economic category is the mandatory formation and use of financial resources.

Finance functions

Distributive function implements the social purpose of finance - providing each participant in social reproduction (both business entities and the state) with the necessary financial resources, as well as determining the directions of cash flows for their intended purpose.

Control function. The implementation of the control function of finance is reflected in the state of financial discipline in the economy.

Financial discipline- this is a mandatory procedure for all legal entities and individuals engaged in business activities, as well as officials, for conducting financial management, complying with established norms and rules, and fulfilling financial obligations.

Thus, the ability to “signal” about the progress of the distribution process is manifested through the control function of finance. The so-called “financial signals” show how the proportions develop in the distribution of funds, how timely financial resources are available to the state and other participants in the reproduction process, whether they are used economically, etc. The main requirement of financial discipline- strict compliance with norms, standards, limits, control figures and other financial parameters defined by law or enshrined in state regulations. In a broad sense, financial discipline includes fiscal discipline, payment discipline and accounting discipline. Financial discipline is an important means of promoting economic development, strengthening commercial accounting and a necessary condition for the normal functioning of finance. It is determined both by the general principles of financial organization and by the specific conditions for the functioning of finance in various structural units of social reproduction.

Section 2. Finance

Law of money circulation

The law of money circulation was formulated by K. Marx. In his work “Capital,” K. Marx gave a scientific explanation of the relationship between such economic indicators as the money supply, the sum of prices for goods and services, credit, mutual and non-cash payments, and the velocity of money circulation. The law can be represented by the formula: KD = SCT-K-P-VP/ C

where CD is the amount of money needed for circulation;

MCP – the sum of prices of goods and services sold;

K – the sum of prices of goods sold on credit;

P – amount of payments on obligations;

VP – the amount of mutually extinguishable obligations;

C is the turnover rate of the currency unit of the same name.

The basic principle of monetary circulation follows from the law of monetary circulation - limiting the money supply to the needs of trade turnover. The amount of money an economy needs depends on the following three factors:

The number of goods and services sold on the market;

Price level of goods and tariffs;

Velocity of money circulation.

The amount of money in circulation primarily depends on the number of goods in circulation. The greater the number of goods circulating in a country, the more money, other things being equal, is required to service trade turnover. Money supply growth targets are determined for a target period, for example, a year in advance, but can be adjusted during the specified period. When setting targets, the Bank of Russia is guided by the following main indicators: projected growth of GNP in real terms; estimated velocity of money circulation in the forecast period; the maximum permissible level of price growth.

The term “finance” comes from the Latin word “finansia”, which means “money payment”. The long process of development of commodity-money relations has changed the content of the phenomenon of finance.

Finance– these are economic social relations, the subject of which are the processes of accumulation, distribution and use of funds in the process of using the social product and income.

Monetary relations turn into financial ones when, as a result of the production of goods and the provision of services during their sale, funds of funds are created. Funds of funds created at the level of the state and local governments are called centralized funds, and funds created at the level of business entities and households are called decentralized.

Finance as a subjective cost instrument for the functioning of economic entities forms a specific mechanism for making decisions regarding the processes of formation and use of monetary funds. The object of finance is financial resources, which are a set of funds of funds at the disposal of business entities, the state, and households, i.e., it is money that serves financial relations. They are formed in the process of material production, where new value is created and gross domestic product and national income arise.

Finance is a set of social relations formed in real money circulation during the formation, distribution and use of funds of funds.

Finance expresses economic relations related to the provision of sources of financing to the state, municipal and private sectors of the economy, spheres of production, circulation and households. The functioning of finance is aimed at the effective development of a socially oriented economy. Finance contributes to the achievement of general goals of economic development, which requires its optimal organization.

The main participants in financial relations are:

1) state;

2) economic entities;

3) population.

Main features of public finance:

1) monetary relations between two entities (where there is no money, there can be no finance);

2) subjects have different rights, one of them (the state) has special powers.

3) in the process of these relations, the state budget is formed;

4) regular receipt of funds into the budget is ensured by law.

The market economic mechanism forms and implements a system of economic relations:

Directly between business entities - producers and consumers (sellers and buyers) of goods and services;

In the sphere of production and circulation;

Between business entities (taxpayers and the state);

In the financial and budgetary sphere - between economic entities (employers and employees);

In the field of labor relations.

Economic entities have many faces and function simultaneously as:

Producer and consumer in the market of goods and services;

Borrower and investor in the financial market;

In a market economy, 3 specific main markets interact:

1) market for goods and services;

2) labor market;

3) financial market.

All three markets are in constant interaction, performing specific functions of the market economic system.

The functioning of finance as an economic category is necessarily associated with the operation of objective economic laws.

At the present stage, such essential characteristics of finance as the social orientation of financial relations are especially emphasized, which enhances the importance of issues of clear interaction between all participants in financial relations in a market economy.

In the world practice of developed countries, there are two main models of market economies that ensure the economic and social progress of society, differing primarily in the degree of state regulation of the economy.

The essence of a particular model is determined by the economic and social role of the state in the development of society. The tax capacity of production and income depends on which model of the market economic system is implemented in post-socialist states.

Finance is an integral link between the creation and use of national income of countries. Finance affects production, distribution and consumption and is objective in nature. They express a certain sphere of production relations and belong to the basic category.

The role of finance in the economy is constantly increasing, reflecting the increasingly complex redistribution relations in society.

Centralized funds of funds are created through the distribution and redistribution of national income created in sectors of material production. These include:

1. state budget;

2. off-budget funds.

Decentralized funds of funds are formed from the cash income and savings of the enterprises and the population themselves. They are the basis of the financial system, since it is in this area that the predominant share of the state’s financial resources is formed. Part of these resources is redistributed in accordance with the norms of financial law into budget revenues of all levels and into extra-budgetary funds. At the same time, a significant part of these funds is subsequently used to finance budgetary organizations; commercial organizations in the form of subventions, subsidies, and is also returned to the population in the form of social transfers (pensions, benefits, scholarships, etc.).

Among decentralized finance, the key place belongs to the finance of commercial organizations. Here material wealth is created, goods are produced, services are provided, and profit is generated, which is the main source of production and social development of society.

The characteristic features of finance are:

1. the distributive nature of the relationship, which is based on legal norms or business ethics, is associated with the movement of real money, regardless of the movement of value in commodity form;

2. one-way (unidirectional), as a rule, the nature of cash flow;

3. creation of centralized and decentralized funds of funds.

The essence of finance is manifested in its functions: distributive, control and stimulating. At the same time, distribution and control functions are interconnected and are performed simultaneously.

Distribution function of finance. When distributing national income, basic, or primary, incomes are created, the amount of which is equal to national income. Formed during the distribution of national income among participants in material production, these incomes are divided into two groups:

1. wages of personnel employed in the field of material production;

2. income of enterprises in the sphere of material production.

But since the state also has other areas and industries where national income is not created, it is necessary to allocate funds for their development. These are industries such as, for example, the defense industry, education, health care, management, social security and maintenance of depressed areas. To ensure these monetary expenses, with the help of finance the state withdraws part of the income created in the sphere of material production, directing it to other spheres. This results in a redistribution of national income with the active participation of finance. In particular, in our country, the redistribution of national income occurs in the interests of structural restructuring and development of agriculture, transport, energy, conversion of military production and in favor of the least affluent segments of the population.

Control function of finance. The control function is to ensure financial control over the distribution of gross domestic product and national income among the relevant funds, as well as their expenditure for their intended purpose. Control covers both the production and non-production spheres, although income is not created in it. The purpose of financial control is to ensure the rational and economical use of material, labor and financial resources, natural resources and the reduction of unproductive expenses and losses.

The control function of finance is ensured by the multifaceted activities of financial authorities: employees of the financial system, the treasury, and the tax service who exercise financial control. Control can be national, departmental, intra-economic and public.

An independent type of control is audit.

The Ministry of Finance of Russia and its local authorities play an important role in the implementation of financial control.

Stimulating function of finance. This function of finance allows the state, with the help of various financial levers, to influence the development of enterprises and entire industries in the direction required by society. Such levers of influence on economic processes are:

1. Budget, funds from which are allocated for the development of a specific industry or facility;

2. Prices and tariffs, which even in a market economy allow the state to influence the financial condition of companies through government intervention in the pricing mechanism;

3. Taxes, which, as the most powerful financial instrument, allow stimulating production at a low level, and slowing it down at an excessively high level;

4. Export-import duties, which, due to low, preferential or high levels, make export-import transactions unevenly profitable.

The simultaneous impact of several financial levers greatly enhances the effect on production development.

Financial resources- this is the totality of all funds that are at the disposal of the state, enterprises, organizations, institutions for the formation of the necessary assets in order to carry out all types of activities both at the expense of income, savings and capital, and at the expense of various types of income. An important component of financial resources are banking resources.

Financial resources are intended:

1. to fulfill financial obligations to the budget, banks, insurance organizations, suppliers of materials and goods;

2. incurring costs for expansion, reconstruction and modernization of production, acquisition of new fixed assets;

3. remuneration and material incentives for enterprise employees;

4. financing other costs.

Financial resources are divided into:

Centralized funds (state budget, extra-budgetary funds);

Decentralized financial resources (enterprise funds).

There are also financial resources of the state, regions, and enterprises.

The main source of formation of centralized funds at the macro level is national income. On the basis of the distribution and redistribution of national income, centralized funds of funds are formed. Part of the national income is generated and remains at the disposal of enterprises, that is, decentralized financial resources are created at the micro level, which are used for production costs.

The main source of financial resources of an enterprise is its profit from production activities.

The use of financial resources is carried out mainly through special-purpose monetary funds, although a non-fund form of their use is also possible.

The financial resources of the state and enterprises are the direct objects of financial management, that is, the management of their formation, use and movement of cash flows.

The availability of sufficient financial resources and their effective use predetermine the good financial position of the enterprise, solvency, financial stability, and liquidity. In this regard, the most important task of enterprises is to find reserves for increasing their own financial resources and their most effective use in order to improve the efficiency of the enterprise as a whole. Effective formation and use of financial resources ensures the financial stability of enterprises and prevents their bankruptcy.

One of the most relevant areas of modern economic theory and practice is finance and credit. In practical activities, monetary issues are resolved every day and everywhere, but in different ways: publicly and secretly, thoughtfully and by trial, but in any case through economic relations in the conditions of interaction of certain subjects of society.

For a long time, in the economic science of the socialist period of development of our country, finance and credit were considered exclusively from the aspect of the state.

There was no private finance or credit; only personal ownership of consumer goods was asserted within the framework of generally accepted norms of socialist society. The finances of enterprises were of a conditional nature.

In foreign economic literature, on the contrary, there was a focus on describing the movement of private monetary resources and technologies for generating income. In this case, economic and mathematical methods and institutional approaches were used, which, like ideological tools, did not always lead to the desired result. Characteristic in this regard is the refusal of Western practice to monetarism as a general direction and basis of socio-economic development. All this suggests that, firstly, there are still no clear answers to many financial and credit questions, and secondly, for the positive development of society, further study of the mechanism of finance and credit is necessary.

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The ultimate purpose of finance and credit is to ensure simple and expanded reproduction of life values ​​to meet the growing needs of members of society. This is a common goal to which all cash flows of economic entities are subject.

Thus, finance and credit are a characteristic phenomenon of a market economy, the management of which primarily involves the need to develop a methodology and technique for studying them.

Methodology and techniques for studying the discipline “Finance and Credit”

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The process of mastering finance and credit, like any science, consists of a methodology (general part) and a methodology (specific part) of study. The general mechanism of knowledge of finance is as follows.

The source material of the research is practice, used, on the one hand, as source material, and on the other, and this is its main purpose, as a criterion for knowing the truth, assessing the reliability of knowledge, and a means of testing theoretical positions. Finance and credit are considered as a unity of an economic category and a subjective cost instrument for the life of society. Studying financial and credit relations in isolation from the subjects and their interests is unlawful and practically untenable. This is the first most important methodological premise.

The second premise is the thesis that a person (individual) is a primary concept, and a group, society is a collection of individuals, secondary phenomena. Therefore, when analyzing facts, the method of ascending from the part to the general, from the concrete to the abstract is used, and when checking, on the contrary, from the abstract to the concrete, particular.

A prerequisite for any analysis is the objectivity of the research. It requires that thoughts, purely personal relationships, sympathies, and social preferences remain outside the scope of science. Otherwise, when approaching a phenomenon from the standpoint of one’s own interests, the entire process of knowledge from collecting and selecting facts to obtaining results will be one-sided, subjective, i.e. unscientific character.

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Study methods depend on the level of research.

The first level is work with empirical material, selection, grouping, generalization of statistical and factual data. Statistical, sociological, economic, economic-mathematical and other techniques are used here. Possible errors at this stage are under-coverage or over-research of data. A clear description of the object and subject of study will help to avoid them. For example, there are the concepts of “tax”, “fee”, “fee”, “duty”, “deductions”. According to this terminology, when talking about taxation, we must abstract from all expressions other than taxes. But in the United States, social security contributions are considered tax payments. Hence only clear initial terminology, unambiguous concepts - the first inalienable rule for establishing the framework of an object and conducting its scientific analysis.

The level ends with a generalization of statistical material for further study of theoretical principles.

The second level is the study of material through dialectics and a systematic approach in the analysis of financial and credit relations.

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The place and role of the discipline “Finance and Credit” in the system of educational subjects

The place and role of the discipline “Finance and Credit” in the system of basic humanitarian disciplines can be traced in the aspect of the educational process of training bachelors and specialists (Fig. 1).

The first level is mastering the basic economic concepts of economic theory, general research methodology (philosophy), law and management. Here students acquire the necessary knowledge of the methodology and methodology for studying economic processes, the basic principles of macro- and microeconomics, the concept of the most important laws and categories of a market economy: production, distribution, consumption, goods, money, market, politics, law, management, etc. Of particular importance is the study of the fundamentals of people's management activities within organizations in general.

Rice. 1. Place and relationships of the discipline “Finance and Credit” in the system of basic humanities

The second level is a special study of general concepts obtained at the first level in the discipline “Finance and Credit”.

The third level is a complex of financial and credit disciplines, including financial management, taxation, insurance, investment, etc. They study individual practical issues of finance and credit for individuals, organizations and the state.

At the fourth level, knowledge and skills of financial and credit activities are used in the study of disciplines in specializations.

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Topic 1. The essence and functions of finance. Role in the system of economic relations.

Question 1. Finance as an economic category.

3. Essence, functions and role of finance

3.1. The essence of finance

The term “finance” comes from the Latin “finis” - end, ending, finish. In the Ancient World and the Middle Ages, in monetary relations between the state and the population, the word “finis” meant the final settlement, the completion of a monetary payment. Persons who paid fees to the judge, the king or various government bodies received a document called a "finis". From the name of this document came the Latin term “financia”, which meant cash payment.

In the 16th century In France, the term “finance” arose, meaning cash, income, payment. This term was used to define the totality of public income and expenditure and gradually transformed into the modern concept of “finance”.

The long process of development of commodity-money relations radically changed the content of finance. If earlier in these relations the main role was played by the monarch, the state as owners and rulers, then in the twentieth century. Citizens become the main owners of values ​​and enterprises, and the state, represented by government authorities, acts as an intermediary and consumer of redistributed benefits. All this gave the right to the American scientists Z. Bondi and R. Merton to rightly note that in the world of finance there are two main actors - households and firms that make certain decisions. 1

In conditions of limited life values 2 the continuation and development of the human race is impossible without such a social process as their redistribution from the able-bodied to the disabled. The greater the amount of value that can be redistributed.

Redistribution can be direct or indirect. The first is carried out within the framework of one form of ownership, when there are no economic concepts of “mine” and “yours”. The second occurs through the economic concepts of “mine”, “yours”, i.e. property institution. This is how parents transfer their property to children, relatives and other entities.

A kind of catalyst for distribution and redistribution relations is the dominance of commodity-money relations, the transformation of all values ​​into goods and the need for their value expression in various market commensurators (money, securities, etc.).

As a result, we observe the presence of the following phenomena:

• formation of independent economic entities and owners of values;
• widespread distribution and redistribution of life values;
• isolation and constant changes in the real and fictitious cost of life's goods.

Their interaction gives rise to a system of movement of life values ​​from one subject to another, which is the basis of finance. At the same time, money is not a direct source of additional life values, but acts as a cost shell for the formation and use of monetary resources of specific subjects of society, independent of people’s consciousness. The interaction of this shell, monetary resources and specific entities forms finance.

Thus, finance is an economic phenomenon, which is a system of formation, distribution, redistribution and use of monetary funds of subjects of society. On the one hand, this phenomenon acts as an economic category, and on the other, as a subjective cost instrument of activity.

As an economic category, finance expresses the relationship between economic entities regarding the formation and use of monetary funds. That is, finance is not only money, but the unity of three elements: at least two subjects, an object and the relationship itself. In the absence of any of them, there is no finance. The basic model of finance is the following diagram (Fig. 3.1.)

rice. 3.1. Model of the essence of finance

Subjects of financial relations in a market economy can be:

• individuals;
• family;
• organizations (legal entities);
• state;
• interstate legal entities;
• non-formal education.

The first four types form the internal system of financial objects of each country, the last three – the international sphere. Of course, real relationships are much broader and more varied. Along with legal subjects of finance, there are extra-legal, so-called informal subjects (organizing committees, clubs, lodges, “troikas”, “sevens”, etc.). They make financial decisions on the formation and use of funds from a position of strength, traditions, customs, and “gentleman’s” agreements. There are especially many such entities in the category of individuals. they form the unofficial (shadow) sphere of education and distribution of funds.

Object of finance are financial resources. They cover real and fictitious values ​​that have a monetary value. This is, firstly, money (paper, electronic, etc.), which in itself does not contain value, but is capable of personifying real material, spiritual and social values; secondly, a variety of securities (shares, bonds, etc.), reflecting the tangible and intangible values ​​of individuals, legal entities and government agencies; thirdly, the various obligations of economic entities. In this case, the assessment (cost) of fictitious values ​​may be greater, less or equal to real existing values.

The set of relationships between subjects regarding changes in an object constitute a complex hierarchical system (Fig. 3.2.).

Rice. 3.2. System of financial relations

The first group of relationships covers connections between individuals. This includes various monetary relations regarding the formation and use of funds of individuals within the circle of relatives, acquaintances, and those taking part in the life of a particular person. This area of ​​finance mediates consumption, reproduction and human development, as well as the production of life values ​​at the primary level, sometimes including acts of purchase and sale of labor and other financial issues.

The relationship of an individual with his family, which makes up the second group, is organically connected with this sphere.

The third group includes the relationships of individuals with non-state production, financial, credit, commercial and other organizations regarding the formation and use of monetary resources. This is the main sphere of relations through which, on the one hand, the generation of income in the form of wages, dividends, interest, borrowed resources, etc. occurs, and, on the other, the investment of funds in the funds of non-governmental organizations. This point is extremely important for understanding the role and place of finances of individuals. It is he who radically changes the socio-economic significance of personal finance, turning it into a basic functional element and legal basis of a market economy. The initial economic base of enterprises in a market economy under conditions of private ownership can be exclusively individual financial capital, the personal wealth of citizens. There is no impersonal joint, collective property, there is only management of joint property. Any association is based on the participation of individual owners. Hence, all partnerships and joint stock companies are, ultimately, pieces of personal finance. Accordingly, when liquidating organizations, the individual interests of shareholders and shareholders are primarily satisfied.

The fourth group of relations reflects the flow of funds between citizens and state legal entities, in which the main place is occupied by the movement, on the one hand, of payments to the budget, and on the other hand, of various targeted cash payments from government organizations (salaries of budget employees, state pensions, social benefits and etc.).

The fifth group of relations arises when there are several owners (shareholders, shareholders) of the organization and expresses the relationship between them regarding the formation of initial monetary funds and the distribution of final financial results. This is the initial and final sphere of finance of collective entrepreneurial activity.

The sixth group of relations is the monetary connections of citizens with economic entities (individuals, non-state legal entities, government agencies) of foreign countries, as well as interstate organizations and associations of countries in terms of investments, income, payments, sponsorship, etc.

The seventh group is the relations of non-governmental organizations with other non-governmental production, financial, credit, commercial and other organizations regarding the formation and use of monetary resources. Through this sphere of relations, on the one hand, the formation of dividends, interest, borrowed resources and other things occurs, and on the other, the sale of created goods and services. The last point is extremely important for understanding the role and place of finance in organizations. It is he who ensures market recognition and monetary metamorphosis of the newly created value of goods and subsequent satisfaction of the material interests of production participants - owners in income, and employees in wages.

The eighth group of relations reflects the relations between non-governmental organizations and state legal entities, in which the main place is occupied by the movement, on the one hand, of payments to the budget, and on the other, of various targeted cash payments from state organizations.

The ninth group of relations are monetary connections of non-governmental organizations with economic entities (individuals, non-state legal entities, government agencies) of foreign countries, as well as interstate organizations and associations of countries in terms of the purchase and sale of labor, investments, income, payments, sponsorship, etc. .d.

The tenth group of relations covers relations between the state and foreign economic entities.

The set of these relations can be classified not only by subjects, but also by:

• functional role and significance in a market economy (consumer of life values ​​and producer-consumer);
• the size and nature of funds;
• degree of plannedness of relations.

The initial, main and final relations are between individuals. Their purpose is to ensure the fulfillment of human needs, their development and reproduction through the formation and use of monetary funds. All other relations have a subordinate, auxiliary meaning.

According to the degree of planning, financial relations can be planned, forecast (indicative) and chaotic. Much is determined by the interaction of forms of ownership.

According to their social form, relationships are divided into formal and informal. Formal relations include those that correspond to the generally recognized forms (law) of society. Informal relationships are unspoken, extra-legal relationships.

The object of the relationship is the value of gross domestic product (GDP), total product, and sometimes national wealth. All this makes finance a powerful economic tool for the distribution and redistribution of the cost of life between economic entities in a society with a market economy.

Finance as a subjective cost instrument for the functioning of economic entities forms a mechanism for making decisions regarding the formation and use of monetary funds.

3.2. Finance functions

The essence of finance, like any economic category, is manifested in its functions. Finance performs two objective functions: distribution and redistribution. The purpose of finance is to distribute and redistribute the value of life values ​​from one entity to another, from the possessing and producing citizens in favor of the poor and non-producing.

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Distribution function of finance – objective and basic. The subjects of distribution are individuals and legal entities - participants in public activities, at whose disposal funds for special purposes are formed. These are citizens, organizations, the state, international structures and international entities.

The initial stage of the emergence of financial relations is the primary distribution of the value of values ​​(initial capital) of citizens to consumer, insurance and investment funds.

At the second stage, production funds and assets necessary to create new value are formed.

At the third stage, the cost of the created values ​​is distributed to the fund for the replacement of consumed values ​​(fixed and working capital), the wage fund of employees and income (profit, interest, rent) by the investor.

The three named stages constitute the primary distribution of life values ​​between owners, organizations and direct participants in production. The further process of value movement reflects redistribution function . Its essence lies in the alienation of the value of some in favor of others, as a result of which the final monetary funds of all subjects of society are formed.

Thus, the redistribution of GDP occurs between various spheres, industries and regions of the country, forms of ownership, social groups and members of society. The financial distribution method covers different levels of management.

Both distribution and redistribution in reality mean the use of funds for some subjects and the formation of funds for others.

Concerning control function execution of decisions (completeness, timeliness, etc.), then it takes place within the exclusively subjective activity of people. Sometimes control is identified with an analysis of the quality (efficiency) of management, but this is a special area of ​​financial management, like accounting, reporting, etc. The importance of the control function of finance increases sharply in the conditions of the modern stage of transition to a market economy, when the interests of subjects are placed above all else.

The content of the control function is to ensure control, firstly, over the movement and formation of the value of life values ​​in society, mainly for the full accumulation of income, and secondly, over the course of expenditure and use of funds. financial control operates during the movement of money and capital through systems and forms of payment, credit, taxation, collateral, etc.

In addition to the distribution, redistribution and control functions in the economic literature, regulating, stimulating and other functions of finance are sometimes called. They are also subjective in nature and serve as management tools. Their purpose comes down to creating relatively better financial conditions for the functioning of some subjects of society compared to others.

3.3. Functional mechanism of finance

The functions of finance are implemented through a functional mechanism consisting of cash flows from the formation and use of various funds.

Money (value) fund represents a certain amount of money (value) for a specific purpose (labor fund, wage fund, depreciation fund, reserve fund, etc.) belonging to a specific economic entity (owner).

In a market economy, there are many value funds. Their totality is divided according to a number of characteristics, including: by the circulation process, by their role in production, by subjects of relationships, etc. The most significant classification is the division of funds by functional purpose: financial resources, financial results and financial forms of expression. Here it is necessary to highlight the following main groups of funds:

• initial, basic;
• consumer;
• insurance;
• investment;
• non-current and current (assets);
• financial;
• special purpose;
• other.

Under original funds means funds that flow to an individual regardless of any of his activities. They consist of values ​​transferred by inheritance, donated by domestic and foreign economic entities, and cash receipts from state and non-state structures. Their carriers are: real estate (land, enterprises, buildings, structures, etc.), movable property (furniture, equipment, vehicles, antiques, luxury items, etc.), cash, securities, as well as intangible assets (patents, licenses and other rights).

Consumer funds– products intended for individual and public consumption.

Insurance funds– funds allocated to compensate for socio-economic losses as a result of accidents, natural and other disasters in the life of people, organizations and the state.

Investment funds- This is the initial capital invested in organizing production. In the activities of organizations they are embodied in their own means.

Non-current funds (assets)– transformation is a form of investment funds reflected in the assets of economic entities with a service life of more than one year. Non-current assets can be for consumer purposes (housing, land and other assets) and for production purposes (buildings, land and other means of production).

Working capital (assets)– a transformed form of investment funds, reflected in the assets of economic entities with a service life of less than one year. Current assets can be for consumer (food, clothing and other valuables) and industrial purposes.

Financial funds cover funds that mediate the formation and implementation of new value, as well as the transfer of embodied value (depreciation fund, wage fund, etc.).

The final structural element of finance are special purpose funds. Among them, consumption and accumulation funds play a special role. The significance of the latter is highest in the context of entrepreneurial activity, when their formation becomes a kind of criterion for the effectiveness of the functioning of finances and all productive human activities.

In addition to the above-mentioned monetary funds, many other funds arise in the process of interaction between economic entities.

The mechanism of connections and interaction of the most important funds is shown schematically in Fig. 3.3.

Rice. 3.3. System of the most important financial funds

In Fig. 3.3. the general direction of the movement of financial resources from the original initial capital through the production sphere to special-purpose funds is clearly visible, part of which (accumulation and reserve funds), while maintaining the patterns of circulation, returns to the original level. Moreover, the faster the turnover of funds, the less initial capital is required.

The arrows in the diagram indicate the functioning processes (metamorphosis, transformation, distribution, formation, etc.) of monetary resources. They are based on cash flows that form the “circulatory system” of finance. By cash flow we mean the movement of value from one entity to another. In this case, the fund of the first is used (distributed, transformed, etc.); the second – is formed (formed). Accordingly, relative to the fund of an economic entity, flows can be positive (inflows) and negative (outflows). If funds are the statics of finance, expressing the relations of owners, then cash flows are their dynamics, transformation. Funds and flows always function in unity. Some cannot exist without the other.

Cash funds and flows are always in motion. Stops make them lifeless and unnecessary. Paper and metal money themselves are not consumed, and electronic money is completely absent.

The described functional mechanism of finance refers to the internal objective content of finance. It receives its real expression in finance as a subjective cost instrument of the life activity of subjects and consists of financial policy, financial law and financial management.

3.4. The role of finance in a market economy

To determine the role of finance, one should trace the impact on society of distribution and redistribution cash flows.

The role of finance in the life of subjects of a market economy is different. Much depends on traditions, customs, natural-historical and specific characteristics of consumption and production.

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The main meaning of finance is the distribution and redistribution of life values ​​between individuals. At the same time, in developed countries the following basic requirements are met:

• ensuring the minimum means for production participants necessary for the existence and reproduction of the labor force;
• providing every poor person with a minimum subsistence level;
• maintaining the material interest of owners in investment activities;
• maintaining a scientifically based optimal ratio between the incomes of 10% of the poor and 10% of the rich population.

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The foundations of the process of distribution of newly created value are laid in the production of life values. At the same time, monetary relations become forms of functioning of individual elements and necessary connections of reproduction.

Each reproduction cycle begins with financial resources and is repeated in the future only after the value created in production and realized in the exchange process is subject to distribution (and redistribution), as a result of which targeted monetary funds are formed - the basis for satisfying various needs.

Financial relations are associated with both real and formal cash flows. The absence of real money movement at the stages of direct creation and consumption of life's goods indicates that it takes on an internal, formal form.

Financial relations begin with the movement of the value of real monetary resources during the formation of conditions and factors of production. Next, value sheds the cash form of money and is embodied in other potential forms.

At the distribution stage, the product created by society is first divided into a share of consumption and accumulation, and then each of these parts is subject to further distribution. The remainder is distributed between the owner of the means of production and hired workers. As a result, the created value in society goes through the first stage of distribution.

The stages of exchange and consumption are possible only after the distribution stage. Each participant in the reproduction process divides his part of the income into a consumption fund and an accumulation fund.

At the second stage, the movement of value in monetary form is characterized by its alienation (transition from the hands of some owners to the hands of others) or the targeted separation of each part of the value (in the hands of one owner). Here there is a one-way (without counter equivalent) movement of the monetary form of value.

At the third stage of reproduction, the distributed value (in monetary form) is exchanged for commodity value (D-T), i.e. acts of purchase and sale are carried out.

In equivalent exchange there is no finance: exchange transactions are serviced by three categories: goods, money and price. However, an unequal exchange (a watch worth 1000 rubles for a box of matches worth 1 ruble) certainly hides a significant financial point, which consists in a conscious or unconscious redistribution of value between the counterparties of the transaction 3 .

Thus, finance mediates the entire reproduction process from the formation of conditions for the creation of values ​​to their consumption. However, they play the greatest role at the stage of distribution and redistribution, during which the value of the social product is distributed according to its intended purpose and business entities, each of which receives its share of the produced product.

The process of cost mediation of social reproduction is carried out using various economic categories, including money, price, depreciation, profit, wages and others. Let's look at the main ones.

Price serves as an economic instrument through which the value of a product receives monetary expression and becomes an object of distribution. The price predetermines the proportions of the future cost distribution, but cannot carry out distribution among the subjects of ownership, functional isolation (allocation, isolation) of various parts of value. An exchange must take place and a distribution of value must take place before all parts of value receive concrete embodiment in certain quantitative proportions. Thus, the process of forming various parts of value can be divided into two stages.

At the first stage, the advance cost is transferred and potential income (wages, profits) is created. At the second stage, the real allocation of the compensation fund (depreciation, working capital) and primary income is carried out. Here, along with price, depreciation, wages, and profit are involved.

Wage expresses the value relations that arise in the process of distributing newly created value as a result of the formation of individual incomes of workers, depending on the quantity and quality of the labor expended by them.

Therefore, the wage fund, like depreciation, as well as profit, represent different areas of finance.

Thus, the role of finance in a market economy is extremely large. The reproduction of values ​​and the entire life activity of people depend on the nature of their functioning.

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