Notes

Financing, Credit, Investments - Economical Categories
Scientific gets results in the concepts of finances in addition to credit, according in order to the specification in the research object, happen to be characterized to be many-sided and many-leveled.

The meaning of wholeness in the economical contact formed in the particular process of creation, distribution and usage of finances, as cash sources is widely spread. For illustration, in "the basic theory of finances" there are two explanations of finances:

1) "... Finances reflect economical relations, formation regarding the funds of money sources, in the act of distribution and even redistribution of national receipts according to the distribution in addition to usage". This description is given comparatively to the situations of Capitalism, any time cash-commodity relations gain universal character;

2) "Finances represent the formation of centralized advertising decentralized money sources, economical relations comparatively with the submission and usage, which serve for fulfillment of the condition functions and requirements as well as provision regarding the conditions regarding the widened even more production". This description is brought with out showing the surroundings of its action. Many of us share partly such explanation of funds and think expedient to generate some specs.

First, finances overcome the bounds associated with distribution and répartition service of the particular national income, although it is a new basic foundation involving finances. Also, development and using typically the depreciation fund which in turn is the component of financial site, belongs to not the distribution and redistribution of the national income (of new value during a new year), but to the distribution involving already developed price.

This latest first appears to get part of value associated with main industrial finances, later its moved to the expense associated with a prepared product (that will be to the value too) and following its realization, in addition to it is fixed the depression pay for. Its source is taken into account before side as a depression kind in typically the consistence of typically the ready products expense price.

Second, absolute goal of finances is a lot wider then "fulfillment of the condition functions and responsibilities and provision of conditions for the particular widened further production". Finances exist about the state levels and also in the manufactures and even branches' level also, and in such conditions, when the most part involving the manufactures are not state.

V. Meters. Rodionova has a different position regarding this subject: "real formation with the monetary resources begins around the stage of supply, when the worth is realized plus concrete economical forms of the recognized value are separated from the consistence of the profit". V. M. Rodionova makes an highlight of finances, since distributing relations, whenever D. S. Moliakov underlines industrial foundation of finances. Although both of them give quite confirm discourse on finances, while an approach to formation, submission and usage associated with the funds of money sources, that comes out associated with the following description of the budget: "financial cash contact, which forms along the way of distribution and even redistribution of the particular partial value involving the national riches and total social product, is associated with the themes in the economy and even formation and consumption of the state funds incomes and personal savings in the widened further production, inside the material stimulation in the workers for fulfillment of the society social and various other requests".

In the manuals of the personal economy we talk with the following meanings of finances:
"Finances from the socialistic express represent economical (cash) relations, with typically the help of which usually, in the form of planned distribution with the incomes in addition to savings the cash of money sources of the state in addition to socialistic manufactures happen to be formed for ensuring the growth of the production, increasing the material and even cultural level associated with people and for satisfying other common society requests".
"The system of design and usage involving necessary funds involving cash helpful guarantying socialistic widened more production represent exactly the finances in the socialistic society. And the totality of economical relations arisen involving state, manufactures and even organizations, branches, locations and separate person according to typically the movement of cash cash make financial relations".
As we've viewed, definitions of funds made by bankers and political those who claim to know the most about finance do not differ greatly.
In every discussed position generally there are:

1) expression regarding essence and happening in the definition of finances;

2) the definition of funds, as the program of the design and use of cash of cash options on the level of phenomenon.

3) Distribution of finances as social product and even the value regarding national income, classification of the distributions planned character, key goals with the economic climate and economical contact, for servicing of which it is usually used.

If reject the preposition "socialistic" in the definition involving finances, organic beef state, that it nevertheless keeps actuality. We all meet with like traditional definitions of finances, without a good adjective "socialistic", in the modern inexpensive literature. We may give this elucidation: "finances represent funds resources of manufacturing and usage, also cash relations appeared in the method of distributing ideals of formed affordable product and countrywide wealth for creation and additional production involving the cash earnings and savings associated with the economical themes and state, rewarding of the staff and satisfaction involving the social requests". in this elucidation of finances just like D. S. Moliakov and V. E. Rodionov's definitions, following the traditional inheritance, all of us meet with the widening of the financial foundation. They concern "distribution and redistribution in the benefit of created inexpensive product, also the partial distribution of the value of nationwide wealth". This most current is extremely actual, relatively for the process of privatization and the changeover to privacy and is periodically used in practice in distinct countries, for example of this, Great Britain and even France.

"Finances -- are cash resources, financial resources, their very own creation and movement, distribution and redistribution, usage, also economical relations, which happen to be conditioned by intercalculations between the inexpensive subjects, movement of cash sources, money blood flow and usage".
"Finances are the technique of economical relations, which are associated with firm creation, submission and usage regarding financial resources".

Many of us talk with absolutely innovational definitions of finances in Z. Physique and R. Merton's basis manuals. "Finance - it is definitely the science about how exactly the people direct spending `the deficit cash resources plus incomes in the particular definite time period. The financial decisions are characterized by the particular expenses and profits which are 1) separated in time, and 2) while a rule, it is impossible to take them into mind beforehand neither by simply those who acquire decisions nor any other person". "Financial theory consists of numbers of the ideas... which learns systematically the subjects of distribution of the cash resources fairly to the period factor; it in addition considers quantitative designs, by using which the estimation, putting straight into practice and understanding of the alternative variants of every single financial decisions consider place".

These basic conceptions and quantitative models are applied at every level of getting financial decisions, but in the latest associated with funds, we talk with typically the following doctrine from the financial foundation: main function of the particular finances is inside the satisfaction from the people's requests; those men of economical activities of any sort (firms, also condition organs of every single level) are focused towards fulfilling this specific basic function.

For the goals of our own monograph, it is definitely important to examine well-known definitions about finances, credit and investment, to determine how and just how much it is possible to assimilate the finances, opportunities and credit in to the one overall part.

Some investigator thing that credit rating is the composed section of finances, when it is talked about from the place of essence and even category. The additional, more numerous team proves, that the inexpensive category of credit rating exists parallel to the economical category regarding finances, by which usually it underlines impracticality of the credit's existence in the consistence of finances.

N. K. Kuchukova underlined the freedom with the category of credit and information that it will be only its "characteristic feature the changed movement of typically the value, which is not connected with transmission of the loan opportunities together with the owners' rights".

D. D. Barkovski responds that functioning involving created an affordable basis for apportioning finances and credit score being an independent group and gave surge to the credit plus financial relations. They noticed the Gnoseological roots of research in money and even credit, as typically the science about budget has business using the research involving such economical contact, which lean on cash flow and credit.
Let's talk about by far the most spread definitions of credit. throughout the modern journals credit appeared to be "luckier", then finances. For instance , many of us meet with these definition of credit score within the finance-economical book: "credit is typically the loan in the form of funds and commodity with the conditions regarding returning, usually, simply by paying percent. Credit represents a kind of movement regarding the loan capital and expresses inexpensive relations between typically the creditor and borrower".

This is the traditional definition of credit. Within the earlier dictionary from the economy many of us read: "credit is the system of cost-effective relations, which is formed while the tranny of cash in addition to material means in to the temporal utilization, as a rule under the conditions associated with returning and paying percent".
In the particular manual from the personal economy published underneath reduction of Sixth is v. A. Medvedev typically the following definition is given: "credit, as a good economical category, conveys the created relationships involving the society, time collective and staff during formation and even use of the personal loan funds, within the terms of paying provide and returning, throughout transmission of resources for the temporary usage and accumulation".

Credit is reviewed in the following through the previous education-methodological manuals involving political economy: "credit is the approach to money relations, which is created in the process of using in addition to mobilization of temporarily free cash means of the condition budget, unions, makes, organizations and populace. Credit has a good objective character. This is used intended for providing widened additional production of typically the state and also other requires. Credit differs coming from finances from the coming back again character, while financing of manufactures plus organizations with the state is fulfilled with no this condition".

All of us meet with the subsequent definition if "the course of economy": "credit is the economical category, which in turn represents relations, although the separate commercial organizations or individuals transmit money ways to each-other for temporal usage under typically the conditions of going back. Creation of credit score is conditioned by simply a historical procedure of fulfilling the economical and cash relations, the kind of which can be the money relation".

Right away scientists give different definitions of credit score:
"Credit - is a loan in the particular form of cash or commodity, that is given to the borrower by a new creditor beneath the problems of returning and paying the portion rate by the borrower".
Credit is usually giving the temporally free money sources or commodity because a debt intended for the defined conditions by the selling price of which is usually. Thus, a credit is usually the loan by means of money or item. In the method of this loan's movement, a certain relations are created between a creditor (the loan is usually given by way of a juridical of physical particular person, who gives selected cash being a debt) and the consumer.
Combining every explanation named above, we come face to face with an idea, of which credit is giving money capital involving commodity as a debt, for sure terms and material accessibility under the price of firm percentage charge. It expresses distinct economical relations between your participants of the technique of capital formation. Need for the credit rating relations is trained, from a single side, by gathering solid variety of temporarily no cost money sources, in addition to from the following side, existence associated with requests of these people.

Though, at the particular same time many of us must distinguish a couple of resembling concepts: mortgage and credit. Bank loan is seen as:

um Here, the discussion may well touch upon transmitting of money and in addition things form one particular side (loaner) to another (borrower): a)under the particular owning of typically the borrower and, at the same time, b) under the particular conditions of returning same amount or even same quantity and even quality of the issues;

o The loaning of money may bear no curiosity;

o Any person may take part in this.
With the difference using loan, credit, which is somehow some sort of private occasion with the loan, represents:

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

o It may not necessarily bear no curiosity (if the job doesn't foresee something);

o In it financial institution is not any person, but some sort of credit organization (at the first place, banks).
So, a credit will be the bank credit. To our brain, it is not really correct to make use of "credit" and "loan" since the synonyms.
Savings crediting is the particular union of relationships between bank (as a creditor) and its borrower. These relations touch on:

a) Giving a certain amount of funds to the lender for definite goal (though, we discuss with the so-called no cost credits, aims in addition to objects of crediting are not equiped inside the assignment);

b) Its opportune returning;

c) Getting percentage rate from the borrower intended for using the sources under his/her fingertips.
The essential groundwork of the credit score essence as well as its important element is presence of trust among the two edges (in Latin "credo", from which comes the word "credit", methods "trust").
From typically the position of circulation of money kinds (in the abstraction, historical process involving formation economical contact and social budget and banking techniques expressed by them) comparing different descriptions of finances and credit, the paradoxon conclusion appears: credit rating could be the private occasion of finances. And even truly, from the particular position of movement involving the money forms, finances represent the formation and using the funds of money means. Very generally such movements happen to be fulfilled without coming back again, but sometimes, that is possible to give loans through the cover the investment projects of other needs. Furthermore, when a manufacture or corporations use their cash funds and we indicate the finances involving industrial subject, such usage may be realized as inside the manufacture or corporation (there is no subject about returning or not returning of the usage), so cuma-cuma under conditions of returning. This most recent is called commercial form due to transmitting the sources to some others, but in this kind of occasion, it is the component of financial system from the manufacture in addition to corporation.

From the particular point of money means that movement, main character of credit is usually the process involving formation and use of the finances of cash implies under the problems of returning and, generally speaking, taking the particular value-percentage. If gating the credit benefit doesn't take place (even in the excellent occasions), according in order to the movement type, credit turns into a private occasion of finances, as in the world wide web financial funds (consequently from the point out budget) the loan products which bear no more interests may be used. If gating credit value needs place, by typically the appearance form, credit rating is discussed to be able to be financial modification.

From the historic point of watch, finances (especially throughout the sort regarding their state budget) in addition to credit (beginning using usury, later commercial and banking) have been developing differently for considering credit in order to be the portion of finances. Though, through the genetic-historical point of view, previous loaners, before giving loan, needed gathering the particular permanent capital not necessarily returning, this is the total financial foundation. The particular banks analogously required concentration in the important own capital for influxing the customers' means and for receiving higher percentage charge under the circumstances of returning. Herewith, exactly on typically the financial basis, in the type of economical fund (which later partially becomes mortgage fund) part of the lender capital is apparently the particular reservation (insurance) part of the pay for, which by character is financial plus not loan. So notwithstanding the essential distinctions between funds and credit contact form the genetic-historical point of view, credit score appears to be formed from finances and stand for their modification.

From the essential location of expressing economical relations of budget and credit, we meet with capital distinctions between those two categories. Which generally expressed by typically the distinction of the movement forms in spite of they are returnable or not. Finances express relations within the facets of supply and redistribution regarding social product plus part of the national wealth. Portia Antonia alexis Neuroscience expresses distribution associated with the appropriate worth only inside the section of percentage given for loan, while according to the particular loan itself, an only a temporal distribution of cash sources takes spot.
Herewith, there is a lot of common involving the finances and credit as from the essential point regarding view, so in line with the form of motion. Simultaneously, there is usually a significant variation between finances in addition to credit as within the utilization of, so throughout the form also. According to this particular, there must be a kind involving generally economical type, that may consider financial situation and credit while a total unity, and in typically the bounds of this kind of category itself, typically the separation of the particular specific essence associated with the finances in addition to credit would take place.

Funding of the cash means is common for the explored economical categories. That takes place throughout any separate technique of finances and even credit, which has been touched upon in the analyses of defining financial situation and credit. Expression combination "funding involving the cash extracts (fund formation)" demonstrates and defines specifically essence and type of economical category associated with more general character, those of finances and even credit categories. Although within the in cost-effective texts and exercise, it is quite uncomfortable to use a termini, which consists associated with three words. In addition, "unloading" with a great information hardens tremendously its influxing in to the circulation even in the conditions regarding its strict substantiation and thoroughness.
Throughout the discussing framework we consider:

1) wide and narrow comprehension of economical category regarding the finances;

2) discussing finances in limit understanding under standard traditional meaning;

3) discussing finances, as financing in the cash means, in wide comprehending, which concerns financial situation - in small meaning and credit score - in complete meaning.
Termini "funding" as well as equivalent "fund formation" are employed by us as the purposeful building of cash means, that is based in two poles instructions accumulation involving resources (gathering) and its particular use for definite goal in the way of financing plus crediting.
We have set up a new termini - "finance-investment sphere" (FIS). Analyses regarding interrelation of budget and credit made by us give people a possibility of showing, that in the particular given termini, the particular word "financial" is employed with the that means of funding cash sources, its purposeful structuring. In this specific process we think about at the equal time financial, credit score and investments' economical categories.

Let's sum up middle results of discussing new idea - "finance-investment sphere" and discuss it is investment consisting elements.

The concept "investments" was brought in to the native affordable science from your To the west. In the Soviet economical science these people for a very long time used throughout the place "investments" the termini "capital placement", which expressed the usage of the commercial factors in typically the sphere of true industrial activities throughout realization of funds projects. From 1 glance, this termini in its strategy is identical towards the "investments", consequently you are able to use them as synonyms. Though typically the termini "investments" plus "investing" possess the advantage towards the termini "capital placement" from linguistic and philological points of watch, because they are expressed together with one word. This specific is not just economical and comfortable in the act of operating with the termini "investment" itself, nevertheless also it offers an opportunity of termini formation. More concretely: "investment process", "investment domain", "finance-investment sphere" - all these types of termini are more acceptable.
Changing native economical termini using foreign ones is certainly purposeful, if this actually matters (by trying to keep parallel use of the particular native termini for the inheritance). Though we must not necessarily change native affordable termini into international ones all collectively, when by ordinal traditional language simple to explain exclusive and narrow concrete floor processes and elements get their personal termini. The "movement" of these termini is definitely approved within the slim professional bounds, but their "spitting out" into the cost-effective science may convert economical language into the tangled slang.

Let's discuss termini - "investment" plus "capital placement's" consumption in the cost-effective literature.
Investments are placement of funds directly into the main and even circulation capital regarding the purpose regarding getting profit. "Investments in material assets - are the positions of funds into the mobile in addition to real estate (land, buildings, furniture and so on). Opportunities in financial assets are the positions of funds directly into the securities bank accounts and some other financial instruments".

We all don't meet along with the termini "investments" in the previous economical dictionary, nevertheless we meet typically the combined termini "investment policy" - typically the union with the professional decisions, which guarantee main directions involving the capital assets, the activities regarding their concentration throughout the determinant suburbs, on which typically the reaching of organized rates of enhancement of the modern society production is depended, balancing and effectiveness, getting more and much more production and income of the domestic income for every single lost Ruble". Regarding today, within the many actual definitions, the particular capital investments will be bounded only simply by financial means, you should definitely only financial, but in addition the investment associated with natural, material-technical and even informational resources happens. Labour resources consider an actual spot in the investment process. They on their own fulfill a purchase process.

A good side of the talked about definitions is that they connect investment policy and money placements (investments):

- economical development according to the essential directions for the concentration;

- providing high costs of economical expansion;

- raising a cost-effective performance, which is stated:

a) by growing typically the throw off involving the production plus national income for every lost Ruble;

b) by fulfilling the branch structure in the investments;

c) by enhancing their technological structure;

d) by optimization of the further production composition.

Compared with this kind of definition of the investments (capital placement) typically the definition of opportunities in the dictionary attaching the "Economics" seems to be unimproved: "investments - the expenses involving gathering production and even industrial means plus increasing material reserve". In this classification current expenses (production expenses) are mixed with the investment (capital) expense. Also, not really the investment costs but (though the investments are then the appropriate expenses) exactly advancing. It differs from the particular expenses by of which the means (means) are put by simply returning the innovative values, also, beneath the conditions of growth, to which typically the concept-advanced capital is definitely corresponding. the advancing may be realized throughout the money, natural-material and informational varieties.

Except the termini "investments", you will discover several more termini associated with the expense. They are shown below.

"Human funds investment" - any kind of activity provided intended for rising the employees work productivity (in the particular way of growing their qualification and developing their abilities); at the expenses associated with improving the workers' education, health and raising the range of motion of the functioning forces". It is usually very helpful to work with the mentioned termini, though it demands one correction: typically the human capital assets do not problem only workers, but also the servants, staff of every type of labour.
"Investment commodity, capital items - a funds. "

In the standard manuals of personal economy of the reformation time the main city opportunities are discussed seeing that "expenses for creating new main funds in addition to widening, reconstruction and renewing the working ones". Within this explanation the investments (capital placements) during parting of the kinds (types) of even more production of the particular main funds will be bounded only simply by main funds (without increases of the particular circulation funds plus insurance reserves):

a) creating new kinds;

b) widening;

c) reconstruction;

d) reviving.

Also, the concept of the particular industrial gathering shows up, at the charges of widening regarding basic, circulation funds as well as insurance reserves takes place".

You are going to meet below typically the definitions of purchases from "the program of economy": typically the investments are called "placements of pay for in to the basic capital (basic means of production), reserves, also other economical things and processes, which request long-termed influxing of material in addition to cash means. "According to the section of capital directly into physical and funds forms, the assets too must be split into material and even cash investments".

That they apportion investment product, to which fit in industrial and nonindustrial building objects, vehicles purposed for transforming or widened tech park and typically the furniture, increasing stores and others.

"They call the full investments of generation an investment product, which is directed towards keeping and raising the basic funds (basic means) plus reserve. Total investments consist of a couple of parts. One of them is referred to as the depreciation; this represents important investment resources for compensation associated with renewal till the particular level of before industrial usage, wearing out and repairing of the basic means. Following consisting part regarding the total purchases is represented by net investments instructions capital investments intended for the purpose of increasing basic means". Depreciation is not some sort of compensation resource regarding wearing the basic funds out, nevertheless it is the purposeful financial supply of this kind of resources.
Human capital investment is "a specific sort of purchases, mostly in education and health protection".

"Real investments will be the investments within the economical limbs and in addition, they are really kinds of economical activities, which offer influxing the raises of real money, that is increasing material values of the industrial means". We can believe such definition with one specification that will material and nonmaterial values too are members of the real capital (wealth), consequently science-researching experimental-construction results, numerous information, education involving he workers and others. Such assistance as organization regarding the excitable online games, also the assistance of redistribution community wealth from single private person to be able to another (except charity).

"Financial investments symbolize placement of funds into the shares, obligations, promissory notes, other securities and instruments. Such assets, of course , do not really give increases involving the real substance capital, but these people help getting income, consequently at the particular expenses of fixing typically the course of the particular securities in typically the moments of speculation, or even distinguishing the training course in various places involving sell and purchasing". We share totally such definition, therefore it follows that will financial investments (if it is far from followed by simply real investments as a result) never increase real materials wealth and real nonmaterial wealth. According to this context, the word below is quite important: "we need distinguish financial investments, which represent location of the finances in the methods of selling plus purchasing the investments for the aim of getting income and financial purchases, which become cash and real, moved to real physical funds. "

In the particular "economical course" estimated in a short time and short-termed investments are separated. Recognizing the existence of the bounds between them, the authors ascribe short-termed investments to "one month or more" investments. If we get such trained criteria, that individuals may call the investments which overcome the particular terms of many months, long-termed types, which is very doubtful and many of us don't agree using it. A long-termed character in the account placement is really an important feature in the opportunities (short-term doesn't combine with the idea of investments). Primarily, it would become better to point outside quick compensative, middle section termed compensative and even long-termed compensative assets:

- less then 6 months - fast compensative;

- from six months time up to typically the year . 5 -- middle termed compensative;

- more then a yr and a half - long termed compensat
Homepage: https://www.lux-mag.com/portia-antonia-alexis-global-elite/