Notes

Finance, Credit, Investments : Economical Categories
Scientific functions in the hypotheses of finances in addition to credit, according to be able to the specification in the research object, happen to be characterized to get many-sided and many-leveled.

The definition of wholeness in the economical associations formed in the process of development, distribution and use of finances, as money sources is broadly spread. For instance, in "the basic theory of finances" you will discover two definitions of finances:

1) "... Finances echo economical relations, development in the funds involving money sources, inside the process involving distribution and redistribution of national receipts according to the distribution plus usage". This classification has relatively to be able to the conditions involving Capitalism, when cash-commodity relations gain universal character;

2) "Finances represent the formation of centralized ad decentralized money sources, affordable relations relatively together with the distribution plus usage, which assist for fulfillment with the state functions and obligations and furthermore provision of the conditions of the widened further production". This kind of definition is brought without showing typically the environment of the action. We reveal partly such description of finances and even think expedient to be able to make some specs.

First, finances get over the bounds regarding distribution and partage service of the countrywide income, though that is a standard first step toward finances. Likewise, formation and utilization of the devaluation fund which is the particular part of economical domain, belongs certainly not to the supply and redistribution involving the national earnings (of newly created value during the year), but to typically the distribution of currently developed value.

This latest first seems to be a new part of associated with main industrial finances, later it is definitely moved to the price price of a ready product (that would be to the value too) along with its conclusion, plus its set the particular depression fund. Their source is consumed into account beforehand as a depression kind in the particular consistence from the ready products price range.

Second, main goal of finances is much wider then "fulfillment with the state features and obligations plus provision of problems for your widened additional production". Finances exist for the state stage as well as on the particular manufactures and branches' level too, in addition to in such circumstances, when the just about all portion of the manufactures are not state.

Sixth is v. M. Rodionova provides a different place about this subject: "real formation regarding the money begins on the level of distribution, if the value is noticed and concrete affordable forms of the realized value are usually separated from typically the consistence in the profit". V. M. Rodionova makes an emphasis of finances, as distributing relations, whenever D. S. Moliakov underlines industrial basis of finances. Though both of these people give quite confirm discussion of money, as a program of formation, submission and using the particular funds pounds options, that is released involving the following associated with the finances: "financial cash relations, which usually forms in the process of supply and redistribution involving the partial associated with the national prosperity and total social product, is related with the subjects regarding the economy and formation and consumption of the point out cash incomes plus savings in typically the widened further generation, in the substance stimulation of the particular workers for satisfaction with the society cultural along with other requests".

Inside the manuals associated with the political economic system we meet along with the following definitions involving finances:
"Finances involving the socialistic condition represent economical (cash) relations, with the aid of which usually, in the method of planned distribution of the profits and savings the particular funds of cash options for the express and socialistic companies are formed regarding guaranteeing the expansion of the production, rising the material and cultural level regarding the people and for satisfying other standard society requests".
"The system of design and usage of necessary funds regarding cash resources intended for guarantying socialistic widened further production represent exactly the finances regarding the socialistic modern society. And the wholeness of economical associations arisen between state, manufactures and businesses, branches, regions plus separate citizen based on the movement of dollars funds make economical relations".
As we have seen, definitions involving finances made by financiers and political economists do not differ greatly.
In each discussed position you will discover:

1) expression of essence and phenomenon in the definition associated with finances;

2) typically the definition of finances, as the system of the creation in addition to usage of finances of cash sources on the level regarding phenomenon.

3) Distribution of finances while social product and the value of countrywide income, definition of the distributions prepared character, main goals of the economic system and economical relationships, for servicing that it is applied.

If refuse typically the preposition "socialistic" within the meaning of budget, we may state, that it nonetheless keeps actuality. We meet with such standard definitions of finances, without an adjective "socialistic", in the present00 economical literature. We might give such an elucidation: "finances represent cash solutions of production and usage, also funds relations appeared throughout the process of distributing values involving formed economical product or service and national prosperity for formation plus further production associated with the cash incomes and savings in the economical subjects plus state, rewarding with the workers and pleasure of the social requests". in this specific elucidation of money like D. S i9000. Moliakov and Sixth is v. M. Rodionov's descriptions, following the classic inheritance, we meet with the widening of the financial foundation. That they concern "distribution plus redistribution of typically the value of created cost-effective product, also typically the partial distribution associated with the associated with national wealth". This most current is very actual, relatively to the particular process of privatization plus the transition in order to privacy and is also occasionally used in training in different countries, for example , Great Great britain and France.

"Finances - are money sources, financial resources, their own creation and movements, distribution and redistribution, usage, also cost-effective relations, that are conditioned by intercalculations among the economical themes, movement of money sources, money flow and usage".
"Finances will be the system of economical relations, which in turn are connected with firm creation, submission and usage of financial resources".

We meet with definitely innovational definitions associated with finances in Z .. Body and 3rd there’s r. Merton's basis instructions. "Finance - it does not take science about exactly how people lead spending `the deficit funds resources and incomes within the definite period of time of time. Typically the financial decisions are usually characterized by the particular expenses and incomes which are 1) segregated with time, and 2) generally speaking, it is definitely impossible for taking them into account beforehand neither by people who get decisions or any other person". "Financial theory consists of amounts of the particular conceptions... which discovers systematically the subjects of distribution in the funds resources relatively in order to the time aspect; it also thinks quantitative models, with the help involving that the estimation, placing into practice and realization of the particular alternative variants associated with every financial choices take place".

These types of basic conceptions plus quantitative models are widely-used at every stage of getting monetary decisions, but also in typically the latest definition regarding finances, we fulfill with these doctrine of the monetary foundation: main perform of the budget is in the satisfaction involving the people's requests; the subjects of economical activities associated with any kind (firms, also state bodily organs of each and every level) are directed towards satisfying this basic function.

For that goals of our monograph, this is important to compare well-known meanings about finances, credit score and investment, in order to decide how and just how much it is possible to incorporate the finances, purchases and credit into the one total part.

Some researcher issue that credit could be the consisting part of finances, if it is discussed in the position of fact and category. Another, more numerous team proves, that a good economical category involving credit exists seite an seite to the affordable category of finances, with which it underlines impossibility of the credit's existence within the consistence of finances.

N. Nited kingdom. Kuchukova underlined the particular independence of the group of credit and even notes that that is only its "characteristic feature typically the turned movement with the value, which is not related to transmitting of the loan opportunities together with the owners' rights".

N. D. Barkovski replies that functioning of money developed an economical base for apportioning financial situation and credit because an independent group and gave rise to the credit and financial contact. He noticed the Gnoseological roots involving science in funds and credit, since the science about funds has business with the research of like economical relations, which usually lean upon cashflow and credit.
Why don't discuss the most spread definitions of credit. in typically the modern publications credit rating appeared to always be "luckier", then financial situation. For example, many of us meet with the following meaning of credit rating in the finance-economical dictionary: "credit may be the loan in the particular form of money and commodity using the conditions of coming back, usually, by paying out percent. Credit presents a form involving movement of the loan capital and presents economical relations in between the creditor and even borrower".

This is usually the traditional classification of credit. In the earlier dictionary of typically the economy we study: "credit is the particular system of cost-effective relations, which will be formed while typically the transmission of money and material means directly into the temporal usage, as a principle under the situations of returning and paying percent".
Within the manual of typically the political economy published under reduction of V. A. Medvedev the next definition is given: "credit, since an economical class, expresses the created relations between the particular society, labour collective and workers during formation and utilization of the loan cash, under the conditions of paying provide and returning, in the course of transmission of sources for the temporal usage and accumulation".

Credit is reviewed within the following method in the earlier education-methodological manuals of politics economy: "credit is usually the system of money relations, which in turn is created within the process associated with using and breaking down of temporarily free cash way of the particular state budget, assemblage, manufactures, organizations and even population. Credit comes with an objective character. It truly is used for offering widened further manufacturing of the state in addition to other needs. Credit rating differs from financial situation by the coming back character, while funding of manufactures plus organizations by typically the state is fulfilled without this condition".

We meet together with the following description if "the course of economy": "credit is surely an economical category, which usually represents relations, as the separate industrial businesses or persons transfer money means to each-other for temporal usage under the conditions of returning. Creation of credit is conditioned by simply a historical process of fulfilling the inexpensive and money relations, the form associated with which is the money relation".

Following researchers give slightly diverse definitions of credit score:
"Credit - is definitely a loan inside the form regarding money or item, which is provided to the borrower by a creditor under the particular conditions of coming back and paying the percentage rate by simply the borrower".
Credit is giving the particular temporally free funds sources or item as a personal debt for that defined words by price regarding fixed percentage. Hence, a credit may be the loan in the form of cash or commodity. In the act of this loan's movement, a certain relations are created between a lender (the loan is definitely given by the juridical of actual person, who gives certain cash as a debt) and even the debtor.
Incorporating every definition known as above, we appear to a good idea, of which credit is supplying money capital regarding commodity as being a credit card debt, for certain terms and material dotacion under the price of firm percent rate. It expresses definite economical contact between the participants of the procedure of capital development. Necessity of typically the credit relations is definitely conditioned, from a single side, by get together solid quantity of temporarily free money sources, and coming from the second side, existence of requests of them.

Although, as well we must distinguish two similarity to concepts: loan in addition to credit. Loan is definitely characterized by:

u Here, the debate may touch upon transmission of money and also items form one part (loaner) to another (borrower): a)under the particular owning of the particular borrower and, from the same moment, b) beneath the conditions of returning equivalent amount or equal quantity and good quality of the things;

o The loaning of money might bear no interest;

o Any particular person may take portion in it.
Together with the difference along with loan, credit, which often is somehow a private occasion of typically the loan, represents:

to One side (loaner) gives to the particular second one (borrower) only money, in addition to _ for material usage;

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

um Within it creditor will be not any individual, but a credit score organization (at the first place, banks).
So, a credit is the bank credit. To be able to our mind, it is not proper to work with "credit" plus "loan" as typically the synonyms.
Banking crediting is the union of relations in between bank (as the creditor) and their borrower. These relationships touch upon:

a) Giving a certain amount of money towards the borrower for definite purpose (though, many of us meet with typically the so-called free loans, aims and items of crediting usually are not appointed in the assignment);

b) Its opportune going back;

c) Getting proportion rate from the particular borrower for using the sources beneath his/her disposal.
The particular essential foundation involving the credit importance and its particular important aspect is existence involving trust between the particular two sides (in Latin "credo", from which comes the term "credit", means "trust").
From the placement of circulation of money forms (in the abstraction, traditional process of creation economical relations and even social budget in addition to banking systems indicated by them) comparing different definitions regarding finances and credit rating, the paradox summary appears: credit may be the private occasion regarding finances. And genuinely, from the position of movement of the money forms, budget represent the process of development and usage of the particular funds of money signifies. Very often these kinds of movements are happy without returning, nevertheless sometimes, it is certainly possible to present loans from the particular cover the purchase projects of additional needs. Also, when a manufacture or perhaps corporations use their very own cash funds in addition to we mean the finances of business subject, such consumption can be realized because inside manufacture or even corporation (there will be no subject concerning returning or not returning of the usage), so gratis under conditions of going back. This latest is named commercial form due to transmitting the options to others, nevertheless even in this celebration, it does not take element of financial system of the manufacture and organization.

From the stage of cash means activity, main character of credit is typically the process of development and usage of the funds associated with cash means underneath the conditions of returning and, generally speaking, taking the value-percentage. If gating the credit value does not take place (even within the exceptional occasions), according to the movement form, credit rating turns into a private celebration of finances, because through the net economic funds (consequently by the state budget) the loans which bear no interests may be applied. If gating credit value takes spot, by the look form, credit will be discussed to end up being financial modification.

Coming from the historical point of view, finances (especially in the sort of their state budget) and credit score (beginning with usury, later commercial plus banking) were establishing differently for considering credit to end up being the part of budget. Though, from the genetic-historical point of see, previous loaners, prior to giving loan, wanted gathering the stable capital not going back, which is net economic foundation. The banking institutions analogously needed focus with the important personal capital for influxing the consumers' means and then for getting larger percentage rate beneath the conditions regarding returning. Herewith, accurately on the economical basis, in typically the kind of financial finance (which later somewhat becomes loan fund) part of the bank capital appears to be the reservation (insurance) part associated with the fund, which in turn by nature is certainly financial and not loan. So notwithstanding the essential distinctions between finances and credit form the particular genetic-historical point regarding view, credit seems to be formed from budget and represent their own modification.

From the particular essential position regarding expressing economical associations of finances and credit, we meet up with with cardinal variations between both of these categories. Which mostly indicated by the differentiation of the activity forms notwithstanding that they are returnable or even not. Finances exhibit relations in the particular areas of distribution and redistribution of sociable product and element of the country wide wealth. Credit states distribution of typically the appropriate value simply in the section of percentage given with regard to loan, while based to the financial loan itself, an simply a temporal distribution of money sources takes place.
Herewith, there is a lot involving common between the financial situation and credit as from the imperative point of look at, so based on the form of movement. Simultaneously, there is a significant distinction in between finances and credit rating as in the inclusion of, so in the form too. In accordance to this, presently there must be some sort of kind of usually economical category, that can consider finances and credit as a new total unity, in addition to in the bounds of this class itself, the splitting up of the special essence of the particular finances and credit rating would happen.

Funding of the money means is popular to the researched economical categories. It calls for place in just about any separate system regarding finances and credit, that have been touched upon through the analyses of defining finances and even credit. Word blend "funding of the particular cash sources (fund formation)" reflects in addition to defines exactly essence and form of inexpensive category of more general character, those of finances and credit categories. Though in the in economical text messaging and practice, it is very uncomfortable to employ a termini, which often consists of a few words. Also, "unloading" with an info hardens greatly it is influxing into the particular circulation during the conditions of it is strict substantiation and even thoroughness.
In the particular discussing context many of us consider:

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

2) discussing finances in narrow understanding in general traditional that means;

3) discussing finances, as funding in the cash means, in wide understanding, which usually concerns finances : in narrow which means and credit - in complete which means.
Termini "funding" as well as equivalent "fund formation" are used by simply us as the particular purposeful structuring regarding cash means, which is based on a couple of poles - piling up involving sources (gathering) as well as its usage with regard to definite purpose in the way involving financing and crediting.
We have established some sort of new termini : "finance-investment sphere" (FIS). Analyses about interrelation of finances in addition to credit produced by us give us an opportunity of proving, of which in the particular termini, the phrase "financial" is used together with the meaning of funding cash options, its purposeful structuring. In this method we consider in the same time financial, credit in addition to investments' economical groups.

Let's sum upward middle results of talking about new concept : "finance-investment sphere" and even discuss its expense consisting parts.

The concept "investments" has been brought into the native economical technology from the West. Throughout the Soviet affordable science they regarding a long time frame used in the spot "investments" the termini "capital placement", which often expressed the utilization of the commercial factors in the world of real business activities during recognition of capital assignments. From one look, this termini inside its concept is definitely identical for the "investments", consequently it is possible to use them as word alternatives. Though the termini "investments" and "investing" have the advantage towards the termini "capital placement" from linguistic and philological details of view, since they are expressed with one particular word. This is definitely not only inexpensive and comfortable along the way of working together with the termini "investment" itself, but likewise it gives a possibility of termini creation. More concretely: "investment process", "investment domain", "finance-investment sphere" : all these termini are more appropriate.
Changing business loans with overseas ones is purposeful, if this really matters (by keeping parallel using the local termini for the particular inheritance). Though we must not change native economical termini into foreign ones all together, any time by ordinal classic language easy to be able to explain private and narrow concrete techniques and elements acquire their own termini. The "movement" of these termini is authorized in the narrow professional bounds, but their particular "spitting out" into the economical technology may turn economical language into the particular tangled slang.

Why don't discuss termini -- "investment" and "capital placement's" usage inside the economical books.
Investments are placement of funds into the main and circulation capital for typically the purpose of getting profit. "Investments found in material assets instructions would be the placements involving funds into the mobile and specific estate (land, properties, furniture and so on). Investments inside financial assets are the placements associated with funds into the securities bank company accounts and other economic instruments".

We may meet with the particular termini "investments" in the earlier economical dictionary, but we meet the combined termini "investment policy" - the union from the industrial selections, which guarantee primary directions of the particular capital investments, the activities of their particular concentration in typically the determinant suburbs, in which the achieving of planned rates of development associated with the society creation is depended, balancing and effectiveness, getting more and much more generation and profit of the national salary for every nowhere to be found Ruble". For nowadays, in the most real definitions, the capital investments are bordered only by monetary means, when not only financial, but additionally the investment of normal, material-technical and informative resources takes place. Time resources take the actual place inside the investment procedure. They themselves satisfy a investment procedure.

A confident side of the discussed descriptions is that they connect investment plan and capital placements (investments):

- affordable development according in order to the key directions to the attention;

- providing high rates of economical growth;

- raising an economical effectiveness, which often is expressed:

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

b) by fulfilling the particular branch structure of the investments;

c) by improving their technological structure;

d) by optimization regarding their further creation structure.

Compared along with such definition regarding the investments (capital placement) the meaning involving investments in the particular dictionary attaching the particular "Economics" seems to be unimproved: "investments - the charges of gathering creation and industrial signifies and increasing stuff reserve". With this classification current expenses (production expenses) are mixed with the investment decision (capital) expense. Furthermore, not the investment decision expenses but (though the investments will be followed by the particular appropriate expenses) exactly advancing. It may differ from the expenditures by that the particular means (means) happen to be put by coming back again the advanced principles, also, under the particular conditions of expansion, to which the concept-advanced capital is corresponding. the progressing may be noticed within the money, natural-material and informational forms.


Except the termini "investments", there are two more termini related with the investment. They happen to be shown below.

"Human capital investment" - any activity supplied for rising the workers labour productivity (in the method of growing their own qualification and building their abilities); from the expenses of improving the workers' education, health and even raising the range of motion with the working forces". It is very useful to be able to use the described termini, though it takes one correction: your capital investments never concern only workers, but also the particular servants, representatives regarding every kind of your time.
"Investment commodity, funds goods - some sort of capital. inch

Inside the official manuals of political overall economy of the reformation time the funds investments are discussed as "expenses for creating new primary funds and widening, reconstruction and reviving the active ones". In this definition the investments (capital placements) during parting of the forms (types) of further manufacturing of the main finances are bounded simply by main finances (without increases regarding the circulation finances and insurance reserves):

a) creating fresh ones;

b) widening;

c) reconstruction;

d) renewing.

Also, the particular concept of the particular industrial gathering appears, at the charges of widening associated with basic, circulation funds and also insurance coverage reserves takes place".

You'll meet listed below the definitions of investments from "the course of economy": the investments these are known as "placements of account into the basic capital (basic signifies of production), stores, also other economical objects and process, which request long-termed influxing of material and even cash means. "According to the label of capital into bodily and money kinds, the investments also must be broken down into material and cash investments".

These people apportion investment commodity, to which belong industrial and nonindustrial building objects, automobiles purposed for varying or widened technical park and typically the furniture, increasing supplies and others.

"They phone the entire investments associated with production an investment product, which can be directed towards keeping and even increasing the standard capital (basic means) in addition to reserve. Total investments consist of two parts. One associated with them is referred to as the depreciation; it signifies important investment solutions for compensation involving renewal till the amount of before industrial usage, wearing out in addition to repairing of the particular basic means. 2nd consisting area of the total investments is displayed by net purchases - capital opportunities for the goal of increasing simple means". Depreciation will be not a payment resource of putting on the basic funds away, but it is the purposeful financial source associated with such resources.
Individual capital investment is usually "a specific type of investments, generally in education plus health protection".

"Real investments are the particular purchases of the cost-effective branches and also, they are sorts of economical activities, which provide influxing typically the increases of genuine capital, that will be increasing material principles from the industrial means". We can agree together with such definition along with one specification that will material and nonmaterial values too belong to the real capital (wealth), consequently science-researching experimental-construction results, various information, education of he staff as well as others. Such services as organization regarding the excitable video games, also the services of redistribution interpersonal wealth from a single exclusive person to a different (except charity).

"Financial investments represent keeping of cash into the shares, obligations, promissory notes, other securities and instruments. Such purchases, of course, conduct not give boosts of the real material capital, nonetheless they help getting income, consequently at the expenses of transforming the span of typically the securities in the period of speculation, or distinguishing the training course in different places of sell plus purchasing". We show wholly such classification, hence it employs that financial opportunities (if it is not followed by real investments while a result) do not increase real material wealth and even real nonmaterial wealth. According to this context, the appearance below is vital: "we must distinguish economic investments, which represent placement of the funds in typically the methods for selling and even purchasing the securities for the purpose of getting income and financial investments, which become money and real, relocated to real physical capital. "

In the "economical course" quoted before long and short-termed investments will be separated. Recognizing the particular existence of the particular bounds between them, the authors ascribe short-termed investments in order to "one month or even more" investments. In the event that we get this sort of conditioned criteria, that we can contact the investments which often overcome the phrases of some several weeks, long-termed ones, which is very doubtful and that we don't agree along with it. A long-termed character of the fund placement is a significant feature of the assets (short-term doesn't combine with the idea of investments). Principally, it will be better to point out and about quick compensative, center termed compensative and long-termed compensative assets:

- less and then 6 months instructions quick compensative;

: from 6 several weeks to the year and even a half instructions middle termed compensative;

- more then this year and a new half - lengthy termed compensative.

All of us stopped at the classification of the purchases of the capital function "economical course" intended for the special objective, as, in it typically the author tried in order to discuss the principle of investments systemically and quite entirely, herewith the publication is published just now.

We'll return to be able to the topic the description economical class of "investments" in different guides in the pursuing chapter. The definitions given here are usually quite enough regarding having an idea of the stage of illuminating the particular given category inside the economical literature.
What conclusions could possibly be made according the definition of the described economical category inside the published functions, except the produced notions and technical specs?

There is very deeply, concretely in addition to thoroughly defined the idea of "investments", different definitions in the affordable literature; but generally in most works concerning the investments reviewed by us right up until now, there is usually not opened the essence of investments as an economical category. In every single monograph, even if it has a name investment, as a good economical category, generally there is given the particular definition, concept of investments. But, while the Academician Vasil Chantladze explains, "a concept can be a dialogue, which proves some thing about the specific feature of the researched object. Some sort of concept from a great deal essential characteristic functions represents only one, and essential within it is simply - definition".

Although the categories are wider; it is definitely "a key, the most fundamental principle of every science". Economical categories theoretically represent real, objectively existed productive associations. A category could be the defining of situations of existed characters, connections, relations from the objective world. Usually, any educational procedure is fulfilled from the categories, which offer opportunities for dividing the processes plus occasions semantically, with regard to expressing the meanings of your subject plus realize their certain peculiarities and economical relations of the material world.
Our goal is exactly to substantiate investments - as an affordable category and likewise, being a financial group within the narrow knowing.

Here we utilize for another guide thesis created by the academician Vasil Chantladze: "every financial relation is an affordable one and every single financial category will be and economical 1, but not every economical relation and affordable category is monetary relation and economic category".
In the particular process of identifying the investments, it is very important take in thoughts the perimeters of assets, expenses and earnings, because investment, coming from one side, is usually the result associated with the manufacture's exercise, and, from one other one, - a part of salary, which, in this case, is not really utilized for usage.
An additional occasion: it is definitely advisable to discuss purchases of two factors: as being a category regarding reserve and stream, which will reflect exactly the link between "placement of funds" and "investments".

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