Notes

Funding, Credit, Investments -- Economical Categories
Scientific functions in the theories of finances and even credit, according to the specification with the research object, will be characterized to get many-sided and many-leveled.

The meaning of wholeness in the economical relations formed in the process of formation, distribution and use of finances, as money sources is broadly spread. For illustration, in "the common theory of finances" you will find two descriptions of finances:

1) "... Finances indicate economical relations, creation with the funds involving money sources, in the process regarding distribution and redistribution of national statements according to the distribution and even usage". This classification is given relatively to be able to the conditions associated with Capitalism, when cash-commodity relations gain universal character;

2) "Finances represent the formation of centralized ad decentralized money sources, inexpensive relations relatively using the distribution plus usage, which provide for fulfillment from the state functions plus obligations and furthermore provision of the particular conditions with the widened further production". This particular definition is introduced without showing the environment of it is action. We talk about partly such justification of finances and think expedient in order to make some specs.

First, finances defeat the bounds associated with distribution and redistribution service of the national income, though that is a basic first step toward finances. Also, formation and utilization of the downgrading fund which can be the part of financial domain, belongs not to the supply and redistribution of the national revenue (of newly produced value during a year), but for the distribution of previously developed value.

This specific latest first appears to be the part of value of main industrial money, later it is usually moved to the expense price of an all sety product (that is always to the value too) after its recognition, in fact it is set typically the depression fund. Their source is used into account before hand as a depression kind in the particular consistence of the prepared products price range.

Next, main goal regarding finances is substantially wider then "fulfillment in the state functions and obligations in addition to provision of conditions to the widened even more production". Finances exist for the state degree as well as on the manufactures and branches' level too, and in such situations, when the most area of the manufactures are usually not state.

Sixth v. M. Rodionova has a different location about this subject: "real formation of the financial resources begins on the level of distribution, once the value is noticed and concrete inexpensive forms of typically the realized value are separated from the consistence of the profit". V. M. Rodionova makes an emphasis of finances, while distributing relations, any time D. S. Moliakov underlines industrial groundwork of finances. Though both of all of them give quite confirm discussion of funds, as a technique of formation, submission and use of the particular funds pounds sources, that comes out associated with the following associated with the finances: "financial cash relations, which forms in typically the process of distribution and redistribution associated with the partial value of the national prosperity and total interpersonal product, is related to the subjects of the economy in addition to formation and utilization of the point out cash incomes in addition to savings in the widened further manufacturing, in the stuff stimulation of the workers for pleasure of the society social and also other requests".

In the manuals involving the political economic climate we meet together with the next definitions involving finances:
"Finances involving the socialistic point out represent economical (cash) relations, by making use of which in turn, in the approach of planned submission of the profits and savings typically the funds of funds sources of the condition and socialistic makes are formed with regard to guaranteeing the growth of the production, rising the material in addition to cultural level of the people as well as for satisfying other basic society requests".
"The system of creation and usage regarding necessary funds associated with cash resources regarding guarantying socialistic increased further production represent exactly the finances associated with the socialistic culture. And the totality of economical associations arisen between condition, manufactures and companies, branches, regions and even separate citizen based on the movement of dollars funds make financial relations".
As we now have seen, definitions associated with finances made by simply financiers and politics economists never vary greatly.
In each discussed position you will discover:

1) expression of substance and phenomenon in the definition involving finances;

2) the particular definition of budget, as the system of the creation and even usage of cash of money sources on the level of phenomenon.

3) Supply of finances since social product plus the value of national income, definition of the distributions designed character, main targets of the economy and economical contact, for servicing that it is utilized.

If refuse the preposition "socialistic" in the definition of budget, we may state, that it nonetheless keeps actuality. We talk with such traditional definitions of funds, without an adjective "socialistic", in the present00 economical literature. We might give like an elucidation: "finances represent cash assets of production and usage, also cash relations appeared inside the process regarding distributing values regarding formed economical product and national riches for formation plus further production of the cash earnings and savings in the economical subjects and even state, rewarding in the workers and fulfillment of the social requests". in this kind of elucidation of funds like D. T. Moliakov and Sixth v. M. Rodionov's meanings, following the classic inheritance, we talk with the widening from the financial foundation. They will concern "distribution plus redistribution of the particular value of created inexpensive product, also the partial distribution associated with the associated with national wealth". This most current is very genuine, relatively to the technique of privatization in addition to the transition to be able to privacy and is also regularly used in training in different places, for instance , Great The united kingdom and France.

"Finances - are dollars sources, money, their creation and motion, distribution and répartition, usage, also affordable relations, that happen to be trained by intercalculations between the economical subjects, movement of dollars sources, money blood circulation and usage".
"Finances are the system associated with economical relations, which in turn are connected with firm creation, circulation and usage associated with financial resources".

We all meet with definitely innovational definitions involving finances in Unces. https://onlinesalsa.nl/members/seattramp9/activity/222529/ and L. Merton's basis guides. "Finance - it is the science about how the people lead wasting `the deficit money resources and incomes in the definite time period of time. The particular financial decisions will be characterized by the expenses and profits that happen to be 1) divided in time, and 2) as a rule, it is certainly impossible for taking these people into account beforehand neither by those who get decisions nor any other person". "Financial theory consists of numbers of typically the conceptions... which learns systematically the topics regarding distribution of the money resources relatively to be able to the time aspect; it also considers quantitative models, together with the help involving which the estimation, placing into practice in addition to realization of the particular alternative variants involving every financial decisions take place".

These basic conceptions plus quantitative models are widely-used at every level of getting economic decisions, however in the latest definition of finances, we meet up with with the following règle of the economic foundation: main performance of the finances is in the satisfaction associated with the people's demands; the subjects associated with economical activities regarding any kind (firms, also state bodily organs of each and every level) happen to be directed towards rewarding this basic functionality.


For Home Buyer Reports Chester regarding our monograph, that is important to compare well-known descriptions about finances, credit score and investment, to decide how and exactly how much it is possible to combine the finances, assets and credit in to the one total portion.

Some researcher factor that credit could be the consisting part of finances, if that is discussed from the position of importance and category. One other, more numerous class proves, that an economical category regarding credit exists seite an seite to the affordable category of funds, by which it underlines impossibility of the particular credit's existence throughout the consistence associated with finances.

N. Nited kingdom. Kuchukova underlined typically the independence of the category of credit and notes that this is only it is "characteristic feature typically the turned movement in the value, which is not related with tranny of the loan opportunities together together with the owners' rights".

N. D. Barkovski replies that working of money produced an economical basis for apportioning financial situation and credit as an independent type and gave surge to the credit and financial relations. He noticed the Gnoseological roots involving science in money and credit, as being the science about budget has business using the research of many of these economical relations, which lean upon earnings and credit.
A few discuss the just about all spread definitions of credit. in typically the modern publications credit rating appeared to end up being "luckier", then budget. For example, many of us meet with the particular following meaning of credit in the finance-economical dictionary: "credit will be the loan in the form of funds and commodity using the conditions of returning, usually, by spending percent. Credit signifies a form associated with movement of the mortgage capital and expresses economical relations in between the creditor plus borrower".

This is usually the traditional description of credit. In the last dictionary of the economy we study: "credit is typically the system of economical relations, which is definitely formed while typically the transmission of money plus material means into the temporal consumption, as a principle under the circumstances of returning and even paying percent".
Within the manual of typically the political economy published under reduction regarding V. A. Medvedev these definition will be given: "credit, while an economical category, expresses the developed relations between the particular society, labour communautaire and workers during formation and consumption of the money cash, under the conditions of paying existing and returning, throughout transmission of sources for the material usage and accumulation".

Credit is discussed in the following way in the earlier education-methodological manuals of political economy: "credit is the system involving money relations, which usually is created within the process regarding using and breaking down of temporarily no cost cash method of the particular state budget, unions, manufactures, organizations in addition to population. Credit posseses an objective character. It is used for delivering widened further manufacturing in the state plus other needs. Credit rating differs from funds by the going back character, while funding of manufactures in addition to organizations by the particular state is satisfied without this condition".

We meet together with the following definition if "the course of economy": "credit is definitely an economical category, which in turn represents relations, as the separate industrial businesses or persons send money means to be able to each-other for temporal usage under the particular conditions of returning. Creation of credit is conditioned by simply a historical procedure for fulfilling the inexpensive and money associations, the form of which is the bucks relation".

Following scientists give slightly different definitions of credit rating:
"Credit - is a loan inside the form involving money or commodity, which is given to the borrower with a creditor under the particular conditions of going back and paying the percentage rate by simply the borrower".
Credit score is giving typically the temporally free cash sources or asset as a financial debt for your defined words by the price of fixed percentage. As a result, a credit is the loan in typically the form of money or commodity. In the process of this loan's movement, a certain relations are produced between a lender (the loan is given by a juridical of physical person, who provides certain cash while a debt) and even the debtor.
Merging every definition named above, we are available to an idea, that credit is offering money capital involving commodity like a financial debt, for certain terms and material dotacion under the price of firm proportion rate. It presents definite economical relationships between the participants of the method of capital development. Necessity of the particular credit relations will be conditioned, from one side, by gathering solid quantity of temporarily free money sources, and through the second part, existence of asks for of them.

Though, concurrently we need to distinguish two like concepts: loan and even credit. Loan is characterized by:

o Here, the dialogue may touch on transmission of funds and also items form one aspect (loaner) to an additional (borrower): a)under the particular owning of typically the borrower and, at the same time, b) under the circumstances of returning equal amount or equal quantity and quality of the issues;

o The lending of money may possibly bear no curiosity;

o Any particular person may take element in it.
Using the difference with loan, credit, which is somehow a private occasion of the loan, represents:

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

o This may not keep no interest (if the assignment won't foresee something);

o In it creditor is usually not any individual, but a credit score organization (at the first place, banks).
So, some sort of credit is typically the bank credit. In order to our mind, it is not appropriate to use "credit" and even "loan" as the particular synonyms.
Banking crediting is the union of relations among bank (as the creditor) and their borrower. These associations touch upon:

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

b) Its opportune coming back;

c) Getting proportion rate from the borrower for making use of the sources underneath his/her disposal.
The particular essential foundation of the credit importance and its particular important component is existence involving trust between the two sides (in Latin "credo", through which comes the word "credit", means "trust").
From the position of circulation of money forms (in the abstraction, historical process of creation economical relations in addition to social budget plus banking systems expressed by them) contrasting different definitions associated with finances and credit score, the paradox conclusion appears: credit will be the private occasion regarding finances. And truly, from the placement of movement of the money forms, budget represent the creation and using the funds of cash implies. Very often this kind of movements are achieved without returning, although sometimes, it is definitely possible to supply loans from typically the budget for the purchase projects of some other needs. Also, any time a manufacture or even corporations use their very own cash funds plus we mean the finances of business subject, such utilization can be realized as in the manufacture or even corporation (there will be no subject concerning returning delete word coming back of the usage), so gratis beneath conditions of returning. This latest is named commercial form because of transmitting the sources to others, but even in this event, it is the element associated with financial system of the manufacture and company.

From the stage of money means activity, main character associated with credit is the particular process of formation and usage associated with the funds involving cash means beneath the conditions regarding returning and, usually, taking the value-percentage. If gating the credit value won't take place (even inside the exceptional occasions), according to the movement form, credit score turns into a private occasion of finances, because in the net monetary funds (consequently by the state budget) the loans which usually bear no interests may be employed. If gating credit rating value takes spot, by the look form, credit is discussed to end up being financial modification.

Coming from the historical point of view, funds (especially in typically the sort of the state budget) and credit score (beginning with usury, later commercial plus banking) were building differently for taking into consideration credit to be the portion of funds. Though, through the genetic-historical point of see, previous loaners, ahead of giving loan, required gathering the quality capital not going back, this is the net economical foundation. The banking companies analogously needed attentiveness from the important individual capital for influxing the consumers' signifies as well as for getting higher percentage rate beneath the conditions involving returning. Herewith, accurately on the financial basis, in the sort of financial account (which later partly becomes loan fund) area of the bank money appears to be the reservation (insurance) part associated with the fund, which often by nature is financial and not loan. So notwithstanding the essential differences between finances and even credit form the genetic-historical point regarding view, credit is apparently formed from finances and represent their particular modification.

From the essential position associated with expressing economical relationships of finances and credit, we meet up with with cardinal differences between both of these groups. Which mostly expressed by the differentiation of the motion forms notwithstanding they are returnable or even not. Finances express relations in the aspects of distribution plus redistribution of sociable product and part of the national wealth. Credit states distribution of the particular appropriate value only in the section involving percentage given with regard to loan, while in accordance to the loan itself, an only a temporal supply of money sources takes place.
Herewith, there exists a lot associated with common involving the budget and credit since from the necessary point of view, so based on the kind of movement. As well, there is some sort of significant distinction among finances and credit as in the inclusion of, so in the particular form too. According to this, presently there must be some sort of kind of generally economical category, that will consider finances and credit as the total unity, in addition to in the bounds of this class itself, the splitting up of the specific essence of typically the finances and credit score would occur.

Financing of the funds means is typical for the researched economical categories. It uses place in any separate system regarding finances and credit score, which has been touched after in the analyses involving defining finances and even credit. Word combo "funding of typically the cash sources (fund formation)" reflects in addition to defines exactly essence and sort of cost-effective category of extra general character, the ones from finances and credit categories. Though in the in economical text messaging and practice, it is rather uncomfortable to work with a termini, which often consists of three words. Also, "unloading" with an details hardens greatly its influxing into typically the circulation during the conditions of the strict substantiation plus thoroughness.
In the discussing context many of us consider:

1) wide and narrow comprehending of economical category of the finances;

2) discussing finances in narrow understanding according to general traditional meaning;

3) discussing financial situation, as funding in the cash means, in wide understanding, which usually concerns finances instructions in narrow that means and credit : in complete meaning.
Termini "funding" and its particular equivalent "fund formation" are used simply by us as the purposeful structuring associated with cash means, that is based on a couple of poles - accumulation pounds sources (gathering) and its particular usage regarding definite purpose within the way involving financing and crediting.
We now have established a new new termini - "finance-investment sphere" (FIS). Analyses about interrelation of finances and credit produced by us all give us an opportunity of proving, that in the specific termini, the word "financial" is utilized along with the meaning involving funding cash sources, its purposeful structuring. In this method we consider in the same moment financial, credit plus investments' economical groups.

Let's sum up middle results of discussing new concept -- "finance-investment sphere" and discuss its investment decision consisting parts.

The concept "investments" has been brought into the native economical scientific research through the West. Inside the Soviet cost-effective science they intended for a long time period used in the location "investments" the termini "capital placement", which in turn expressed the utilization of the industrial components in the sphere of real commercial activities during realization of capital assignments. From one peek, this termini inside its concept is certainly identical to the "investments", consequently it is possible to make use of them as word and phrase replacements. Though the termini "investments" and "investing" hold the advantage toward the termini "capital placement" from linguistic and philological points of view, because they are expressed with one word. This is definitely not only affordable and comfortable in the process of working using the termini "investment" itself, but in addition it gives the opportunity of termini development. More concretely: "investment process", "investment domain", "finance-investment sphere" -- all these termini are more acceptable.
Changing native cost-effective termini with foreign ones is purposeful, if it really issues (by keeping seite an seite use of the local termini for the particular inheritance). Though we must not change native economical termini into foreign kinds all together, when by ordinal conventional language easy to explain private in addition to narrow concrete procedures and elements obtain their own termini. The "movement" of these termini is approved in the narrow expert bounds, but their very own "spitting out" in to the economical research may turn inexpensive language into typically the tangled slang.

A few discuss termini : "investment" and "capital placement's" usage inside the economical literature.
Investments are placement of funds into typically the main and blood circulation capital for typically the purpose of buying profit. "Investments found in material assets - will be the placements involving funds into the mobile and normal estate (land, properties, furniture and therefore on). Investments on financial assets usually are the placements of funds into the particular securities bank accounts and other economical instruments".

We may meet with the particular termini "investments" in the earlier inexpensive dictionary, but we all meet the combined termini "investment policy" - the association with the industrial choices, which guarantee primary directions of the particular capital investments, the particular activities of their own concentration in the particular determinant suburbs, upon which the reaching of planned prices of development of the society generation is depended, handling and effectiveness, having more and more production and profit associated with 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 sole financial, but in addition typically the investment of natural, material-technical and educational resources happens. Work resources take a good actual place within the investment procedure. They themselves accomplish this or that investment method.

An optimistic side involving the discussed explanations is that they connect investment insurance plan and capital positionings (investments):

- cost-effective development according to be able to the key instructions to the concentration;

- providing high rates of cost-effective growth;

- increasing an economical effectiveness, which is expressed:

a) by growing typically the throw off from the production and country wide income for every lost Ruble;

b) by fulfilling the particular branch structure associated with the investments;

c) by improving their own technological structure;

d) by optimization of their further production structure.

Compared using such definition associated with the investments (capital placement) the meaning of investments in the particular dictionary attaching typically the "Economics" seems to be able to be unimproved: "investments - the costs of gathering generation and industrial signifies and increasing substance reserve". In this definition current expenses (production expenses) are merged with the investment decision (capital) expense. Also, not the purchase expenses but (though the investments are usually followed by the particular appropriate expenses) exactly advancing. It may differ from the expenditures by that the particular means (means) are put by going back the advanced ideals, also, under typically the conditions of growth, to which the particular concept-advanced capital is definitely corresponding. the evolving may be recognized in the money, natural-material and informational varieties.

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

"Human capital investment" -- any activity offered for rising the workers labour efficiency (in the approach of growing their qualification and developing their abilities); at the expenses associated with improving the workers' education, health in addition to raising the mobility of the working forces". It is quite useful to be able to use the stated termini, though it needs one correction: the human capital investments never concern only employees, but also the particular servants, representatives of every sort of work.
"Investment commodity, capital goods - the capital. inches

In the official manuals of political economic system of the reformation time the money investments are reviewed as "expenses regarding creating new key funds and extending, reconstruction and reviving the active ones". In this classification the investments (capital placements) during parting with the forms (types) of further manufacturing in the main money are bounded just by main cash (without increases associated with the circulation money and insurance reserves):

a) creating fresh ones;

b) widening;

c) reconstruction;

d) renewing.

Also, the particular concept of typically the industrial gathering seems, at the charges of widening involving basic, circulation finances and also insurance policy reserves takes place".

You'll meet listed below the definitions associated with investments from "the course of economy": the investments these are known as "placements of pay for into the standard capital (basic means of production), reserves, also other inexpensive objects and process, which request long-termed influxing of fabric and even cash means. "According to the division of capital into bodily and money forms, the investments also must be separated into material and cash investments".

They apportion investment commodity, to which are supposed to be industrial and nonindustrial building objects, automobiles purposed for shifting or widened technological park and the particular furniture, increasing reserves and others.

"They contact the whole investments regarding production an expense product, that is focused towards keeping and even increasing the essential money (basic means) plus reserve. Total purchases consist of a couple of parts. One involving them is known as the depreciation; it presents important investment sources for compensation regarding renewal till the degree of before industrial usage, wearing out in addition to repairing of the basic means. Next consisting area of the full investments is symbolized by net opportunities - capital assets for the goal of increasing basic means". Depreciation is not a reimbursement resource of wearing the basic funds away, but it is the purposeful financial source of such resources.
Human being capital investment will be "a specific type of investments, generally in education and even health protection".

"Real investments are the particular purchases of the affordable branches and furthermore, they are types of economical activities, which usually provide influxing typically the increases of genuine capital, that is increasing material ideals with the industrial means". We can agree using such definition using one specification that material and nonmaterial values too are supposed to be to the actual capital (wealth), consequently science-researching experimental-construction effects, various information, training of he employees yet others. Such assistance as organization involving the excitable game titles, also the assistance of redistribution cultural wealth in one non-public person to a different (except charity).

"Financial purchases represent keeping of money into the gives you, obligations, promissory information, other securities plus instruments. Such investments, of course, do not give improves of the genuine material capital, nevertheless they help getting income, consequently at the particular expenses of altering the span of the securities inside the moment of speculation, or distinguishing the training course in different spots of sell in addition to purchasing". We share wholly such explanation, hence it uses that financial opportunities (if it is definitely not followed by simply real investments as a result) carry out not increase genuine material wealth in addition to real nonmaterial prosperity. According to this specific context, the phrase below is essential: "we must distinguish financial investments, which stand for placement of typically the funds in typically the ways of selling and purchasing the stock options for the objective of getting revenue and financial opportunities, which become money and real, relocated to real actual capital. "

Within the "economical course" cited before long in addition to short-termed investments will be separated. Recognizing the existence of the particular bounds between these people, the authors ascribe short-termed investments to be able to "one month or more" investments. When we get such conditioned criteria, that will we can contact the investments which usually overcome the words of some a few months, long-termed ones, which can be very doubtful and we don't agree along with it. A long-termed character of the fund placement is definitely a significant function of the opportunities (short-term doesn't blend with the concept of investments). Principally, it would be much better to point away quick compensative, midst termed compensative in addition to long-termed compensative assets:

- less after that 6 months -- quick compensative;

: from 6 a few months up to the year in addition to a half -- middle termed compensative;

- more then your year and a new half - very long termed compensative.

Many of us stopped at the description of the purchases of the capital job "economical course" with regard to the special goal, as, inside the author tried to discuss the principle of investments systemically and quite completely, herewith the book is published at the moment.

We'll return to the discussion the explanation economical category of "investments" in different guides in the subsequent chapter. The meanings given here usually are quite enough with regard to having an idea of the stage of lighting up the particular given category inside the economical books.
What conclusions may be made according the definition of the described economical category in the published works, except the manufactured notions and requirements?

There is very deeply, concretely and even thoroughly defined the idea of "investments", different definitions in the economical literature; but typically in each works regarding the investments reviewed by us till now, there will be not opened typically the essence of investments as an affordable category. In each monograph, even though that has a title investment, as a good economical category, generally there is given only the definition, concept regarding investments. But, seeing that the Academician Vasil Chantladze explains, "a concept is really a debate, which proves a thing about the specific feature of typically the researched object. The concept out of a lot essential characteristic functions represents only one, and even essential inside is just - definition".

Although the categories are wider; it is definitely "a key, typically the most fundamental strategy of every science". Economical categories theoretically represent real, objectively existed productive relations. A category is the defining of events of existed heroes, connections, relations with the objective world. Generally, any educational method is fulfilled with the categories, which offer opportunities for splitting the processes and even occasions semantically, intended for expressing the definitions of any subject plus realize their particular peculiarities and inexpensive relations of the material world.
Our own goal is exactly to substantiate investments - as an inexpensive category and in addition, like a financial group inside the narrow understanding.

Here we use for another handbook thesis produced by typically the academician Vasil Chantladze: "every financial connection is an affordable one and just about every financial category is usually and economical a single, although not every inexpensive relation and inexpensive category is monetary relation and economic category".
In typically the process of defining the investments, it is important to take in brain the perimeters of assets, expenses and profits, because investment, coming from one side, is the result of the manufacture's action, and, from an additional one, - some sort of part of salary, which, in this particular case, is not really employed for usage.
Another occasion: it is definitely advisable to discuss purchases of two elements: as a category of reserve and movement, which will reveal exactly the link between "placement regarding funds" and "investments".

As we've described above, a little bit ago, in the well-known Soviet literature the aspects of "the placement of funds" and "investments" were accepted to be the synonyms and involved to become investment of sources for additional production in the major funds and creation of the turnover funds. We discuss with such understanding of the idea of "investment" (here, they separate a few types of the purchase expenses: investments found in the basic capital of investments, purchases of the house developing and investments throughout the reserves) in the modern inexpensive publications and this is mostly utilized for the macro quality during a statistical evaluate of economical processes. In this concrete celebration investment is the particular category of book.

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