Notes

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

The definition of totality with the economical relations formed in the process of creation, distribution and usage of finances, as money sources is commonly spread. For instance, in "the common theory of finances" you will find two definitions of finances:

1) "... Finances indicate economical relations, development from the funds of money sources, in the process of distribution and partage of national statements based on the distribution and usage". This definition is given relatively to the conditions involving Capitalism, when cash-commodity relations gain widespread character;

2) "Finances represent the organization associated with centralized ad decentralized money sources, cost-effective relations relatively together with the distribution plus usage, which assist for fulfillment of the state functions plus obligations and in addition provision of the particular conditions of the increased further production". This kind of definition is delivered without showing the particular environment of their action. We share partly such explanation of finances in addition to think expedient in order to make some specification.

First, finances defeat the bounds regarding distribution and redistribution service in the national income, though that is a basic foundation of finances. Likewise, formation and usage of the depreciation fund which can be typically the part of economic domain, belongs not necessarily to the distribution and redistribution of the national revenue (of newly produced value during some sort of year), but for typically the distribution of previously developed value.

This kind of latest first shows up to be some sort of part of associated with main industrial money, later it is definitely moved to the expense price of an all sety product (that would be to the value too) after its realization, and it is set the particular depression fund. Its source is obtained into account beforehand as a depressive disorder kind in the consistence in the prepared products cost price.

Next, main goal involving finances is very much wider then "fulfillment in the state functions and obligations and provision of conditions for that widened further production". Finances are present within the state level as well as on the manufactures and branches' level too, and in such circumstances, when the most area of the manufactures will be not state.

V. M. Rodionova provides a different place about this theme: "real formation of the financial resources begins on the phase of distribution, if the value is recognized and concrete economical forms of the particular realized value happen to be separated from the particular consistence of the profit". V. M. Rodionova makes an accent of finances, because distributing relations, whenever D. S. Moliakov underlines industrial groundwork of finances. Though both of them give quite verify discussion of money, as a program of formation, circulation and use of typically the funds involving resources, that arrives of the following associated with the finances: "financial cash relations, which often forms in the process of supply and redistribution regarding the partial value of the national prosperity and total sociable product, is related with the subjects involving the economy in addition to formation and consumption of the point out cash incomes and savings in the particular widened further generation, in the stuff stimulation of typically the workers for fulfillment of the society cultural and also other requests".

Inside the manuals regarding the political economic system we meet using these definitions involving finances:
"Finances involving the socialistic point out represent economical (cash) relations, with the help of which in turn, in the way of planned circulation of the earnings and savings the funds of money sources of the state and socialistic companies are formed intended for guaranteeing the expansion associated with the production, growing the material and even cultural level involving the people as well as for satisfying other standard society requests".
"The system of creation and usage involving necessary funds regarding cash resources regarding guarantying socialistic increased further production symbolize exactly the finances of the socialistic culture. And the totality of economical relations arisen between condition, manufactures and organizations, branches, regions plus separate citizen in line with the movement of dollars funds make financial relations".
As we now have seen, definitions associated with finances made simply by financiers and personal economists tend not to vary greatly.
In most reviewed position you can find:

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

2) the definition of funds, as the system of the creation and even usage of funds of cash sources upon the level of phenomenon.

3) Distribution of finances because social product as well as the value of nationwide income, definition associated with the distributions planned character, main goals of the economic system and economical contact, for servicing which it is applied.

If refuse the preposition "socialistic" within the meaning of finances, we may point out, that it nonetheless keeps actuality. Many of us discuss with such conventional definitions of money, with no adjective "socialistic", in the present00 economical literature. Organic beef give like an elucidation: "finances represent cash assets of production in addition to usage, also dollars relations appeared throughout the process of distributing values associated with formed economical product and national riches for formation plus further production associated with the cash incomes and savings from the economical subjects plus state, rewarding from the workers and satisfaction of the interpersonal requests". in this specific elucidation of budget like D. H. Moliakov and V. M. Rodionov's definitions, following the classic inheritance, we meet with the widening of the financial foundation. They will concern "distribution plus redistribution of typically the value of created affordable product, also typically the partial distribution involving the associated with countrywide wealth". This most current is very genuine, relatively to typically the procedure for privatization and even the transition to be able to privacy and is also routinely used in practice in different nations around the world, for instance , Great The united kingdom and France.

"Finances - are funds sources, financial resources, their own creation and activity, distribution and répartition, usage, also cost-effective relations, that happen to be trained by intercalculations involving the economical subject matter, movement of cash sources, money flow and usage".
"Finances are the system involving economical relations, which in turn are connected with firm creation, submission and usage of financial resources".

We all meet with absolutely innovational definitions regarding finances in Z. Body and R. Merton's basis guides. "Finance - it does not take science about just how the people lead spending `the deficit funds resources and profits inside the definite time period of time. The particular financial decisions happen to be characterized by the expenses and profits that happen to be 1) divided on time, and 2) as a rule, it is certainly impossible to adopt all of them into account beforehand neither by those who get decisions or any other person". "Financial theory consists of amounts of the particular conceptions... which discovers systematically those men of distribution with the funds resources relatively to be able to the time factor; it also looks at quantitative models, along with the help regarding that this estimation, adding into practice in addition to realization of the particular alternative variants associated with every financial choices take place".

These kinds of basic conceptions and quantitative models are widely-used at every degree of getting economic decisions, but in the latest definition regarding finances, we fulfill with the next cortège of the economical foundation: main function of the costs is in the satisfaction involving the people's demands; the subjects regarding economical activities regarding any kind (firms, also state internal organs of each and every level) happen to be directed towards satisfying this basic functionality.

For that goals regarding our monograph, this is important to compare well-known explanations about finances, credit and investment, to be able to decide how and just how much it is usually possible to assimilate the finances, opportunities and credit in the one total element.

Some researcher factor that credit is the consisting part of finances, if that is discussed through the position of importance and category. The other, more numerous group proves, that an economical category regarding credit exists seite an seite to the inexpensive category of financial situation, in which it underlines impossibility of the particular credit's existence inside the consistence associated with finances.

N. T. Kuchukova underlined the independence of the particular category of credit and even notes that it is only the "characteristic feature the particular turned movement in the value, which is usually not related with indication of the bank loan opportunities together with the owners' rights".

N. D. Barkovski replies that working of money developed an economical base for apportioning budget and credit since an independent class and gave climb to the credit and financial relationships. He noticed typically the Gnoseological roots regarding science in cash and credit, as the science about budget has business with the research of such economical relations, which in turn lean upon income and credit.
A few discuss the many spread definitions regarding credit. in the particular modern publications credit appeared to be "luckier", then budget. For example, many of us meet with the following meaning of credit rating in the finance-economical dictionary: "credit could be the loan in the particular form of funds and commodity with the conditions of returning, usually, by paying percent. Credit represents a form associated with movement from the mortgage capital and expresses economical relations involving the creditor and even borrower".

This will be the traditional definition of credit. In the last dictionary of the economy we examine: "credit is the particular system of economical relations, which is usually formed while the particular transmission of cash and even material means directly into the temporal utilization, as a principle under the conditions of returning plus paying percent".
Within the manual of typically the political economy released under reduction of V. A. Medvedev the subsequent definition will be given: "credit, while an economical type, expresses the developed relations between the society, labour communautaire and workers throughout formation and use of the money money, under the terms of paying current and returning, in the course of transmission of options for the temporary usage and accumulation".

Credit is mentioned inside the following method in the earlier education-methodological manuals of personal economy: "credit is usually the system of money relations, which often is created in the process regarding using and breaking down of temporarily no cost cash ways of the state budget, assemblage, manufactures, organizations and population. Credit has a objective character. It really is used for providing widened further generation with the state and even other needs. Credit rating differs from financial situation by the going back character, while funding of manufactures and organizations by the particular state is happy without this condition".

We meet along with the following explanation if "the span of economy": "credit is surely an economical category, which usually represents relations, while the separate industrial organizations or persons broadcast money means to each-other for material usage under the particular conditions of coming back again. Creation of credit rating is conditioned simply by a historical technique of fulfilling the affordable and money contact, the form regarding which is the money relation".

Following researchers give slightly various definitions of credit rating:
"Credit - is definitely a loan throughout the form associated with money or item, which is given to the borrower by a creditor under the particular conditions of returning and paying the particular percentage rate by the borrower".
Credit is giving the particular temporally free money sources or asset as a debt for that defined words by price of fixed percentage. As a result, a credit will be the loan in the form of funds or commodity. Along the way of this loan's movement, a certain relations are created between a lender (the loan will be given by the juridical of actual person, who offers certain cash since a debt) in addition to the debtor.
Incorporating every definition named above, we are available to an idea, that credit is supplying money capital regarding commodity as being a debt, for certain conditions and material dotacion under the cost of firm percentage rate. It expresses definite economical relationships between the participants of the procedure of capital development. Necessity of typically the credit relations will be conditioned, from 1 side, by accumulating solid quantity associated with temporarily free funds sources, and by the second aspect, existence of demands of them.

Though, concurrently we must distinguish two resembling concepts: loan and even credit. Loan is usually characterized by:

to Here, the dialogue may touch upon transmission of funds and also items form one part (loaner) to an additional (borrower): a)under the owning of the borrower and, with the same time, b) within the situations of returning same exact amount or same quantity and quality of the issues;

o The lending of money may well bear no fascination;

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

um One side (loaner) gives to typically the second one (borrower) only money, and even _ for secular usage;

o That may not carry no interest (if the assignment doesn't foresee something);

o Inside creditor will be not any individual, but a credit organization (at the first place, banks).
So, a credit is typically the bank credit. In order to our mind, it is not correct to use "credit" plus "loan" as typically the synonyms.
Banking crediting is the marriage of relations among bank (as the creditor) and their borrower. These contact touch upon:

a) Providing an certain quantity of money towards the borrower for distinct purpose (though, we all meet with the so-called free credit, aims and items of crediting are usually not appointed in the assignment);

b) Its opportune going back;

c) Getting percent rate from the borrower for using the sources beneath his/her disposal.
The essential foundation associated with the credit substance as well as its important aspect is existence associated with trust between typically the two sides (in Latin "credo", from which comes the term "credit", means "trust").
From the placement of circulation regarding money forms (in the abstraction, historical process of development economical relations and even social budget and banking systems indicated by them) comparing different definitions involving finances and credit rating, the paradox realization appears: credit is the private occasion regarding finances. And genuinely, from the placement of movement of the money forms, costs represent the development and using typically the funds of money indicates. Very often these kinds of movements are achieved without returning, nevertheless sometimes, it is definitely possible to present loans from typically the budget for the purchase projects of other needs. Also, whenever a manufacture or perhaps corporations use their cash funds and even we mean the particular finances of business subject, such utilization could possibly be realized while inside manufacture or perhaps corporation (there is usually no subject concerning returning or not returning of the usage), so gratis under conditions of coming back again. This latest is called commercial form because of transmitting the resources to others, nevertheless in this event, it does not take element involving financial system from the manufacture and organization.

From the point of cash means movements, main character of credit is the process of development and usage of the funds involving cash means beneath the conditions of returning and, usually, taking the value-percentage. If gating the credit value doesn't occur (even in the exceptional occasions), according to the movement form, credit rating becomes a private event of finances, as from the net monetary funds (consequently coming from the state budget) the loans which bear no interests may be used. If gating credit score value takes spot, by the physical appearance form, credit is usually discussed to always be financial modification.

From the historical stage of view, funds (especially in the sort of their state budget) and credit score (beginning with usury, later commercial in addition to banking) were establishing differently for taking into consideration credit to always be the a part of finances. Though, in the genetic-historical point of see, previous loaners, before giving loan, required gathering the permanent capital not coming back again, this provides the net economical foundation. The financial institutions analogously needed attention in the important own capital for influxing the consumers' implies and for getting larger percentage rate underneath the conditions regarding returning. Herewith, specifically on the economical basis, in typically the type of financial fund (which later partly becomes loan fund) portion of the bank money definitely seems to be the booking (insurance) part regarding the fund, which in turn by nature is usually financial and not necessarily loan. So notwithstanding the essential differences between finances and credit form the particular genetic-historical point regarding view, credit appears to be formed from finances and represent their own modification.

From the essential position of expressing economical relationships of finances plus credit, we fulfill with cardinal dissimilarities between both of these types. Which mostly indicated by the variation of the activity forms notwithstanding that they are returnable or even not. Finances express relations in the areas of distribution and even redistribution of sociable product and portion of the country wide wealth. Credit expresses distribution of the particular appropriate value just inside the section involving percentage given regarding loan, while in accordance to the bank loan itself, an only a temporal submission of money sources takes place.
Herewith, we have a lot regarding common involving the funds and credit as from the essential point of watch, so based on the contact form of movement. Concurrently, there is some sort of significant distinction between finances and credit as in the utilization of, so in the particular form too. According to this, right now there must be a new kind of normally economical category, that can consider finances and credit as a total unity, and even in the range of this class itself, the parting of the particular essence of typically the finances and credit would take place.

Money of the cash means is frequent towards the researched economical categories. It calls for place in any kind of separate system regarding finances and credit, that have been touched on in the analyses of defining finances and credit. Word combination "funding of the particular cash sources (fund formation)" reflects and defines exactly fact and type of cost-effective category of extra general character, those of finances and credit score categories. Though inside the in economical text messages and practice, it is very uncomfortable to employ a termini, which in turn consists of a few words. Also, "unloading" with an info hardens greatly the influxing into the particular circulation in the particular conditions of its strict substantiation plus thoroughness.
In the discussing context we consider:

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

2) discussing finances on narrow understanding less than general traditional that means;

3) discussing financial situation, as funding in the cash means, inside wide understanding, which often concerns finances - in narrow that means and credit instructions in complete meaning.
Termini "funding" as well as its equivalent "fund formation" are used simply by us as the particular purposeful structuring regarding cash means, which is based on a couple of poles - deposition pounds sources (gathering) and its particular usage with regard to definite purpose inside the way of financing and crediting.
https://notes.io/qjzzB have established a new termini - "finance-investment sphere" (FIS). Analyses about interrelation of finances and credit made by us all give us a possibility of proving, that will in the specific termini, the word "financial" can be used with the meaning of funding cash options, its purposeful structuring. In this method we consider at the same period financial, credit plus investments' economical groups.

Let's sum upward middle outcomes of talking about new concept -- "finance-investment sphere" and discuss its purchase consisting parts.

The particular concept "investments" seemed to be brought into the native economical technology in the West. In the Soviet affordable science they with regard to a long time period used in the area "investments" the termini "capital placement", which usually expressed the usage of the industrial aspects in the ballpark of real industrial activities during understanding of capital assignments. From one look, this termini within its concept is usually identical for the "investments", consequently it is easy to make use of them as synonyms. Though the termini "investments" and "investing" hold the advantage to the termini "capital placement" from linguistic and philological points of view, since they are expressed with a single word. This will be not only affordable and comfortable at the same time of working with the termini "investment" itself, but furthermore it gives a possibility of termini formation. More concretely: "investment process", "investment domain", "finance-investment sphere" : all these termini are more acceptable.
Changing native affordable termini with foreign ones is purposeful, whether it really things (by keeping parallel use of the local termini for typically the inheritance). Though we must not modify native economical termini into foreign types all together, when by ordinal traditional language easy to be able to explain private and even narrow concrete operations and elements get their own termini. The "movement" of these termini is accepted within the narrow professional bounds, but their very own "spitting out" directly into the economical research may turn economical language into the tangled slang.

Why don't discuss termini instructions "investment" and "capital placement's" usage in the economical books.
Investments are keeping of funds into the particular main and blood flow capital for typically the purpose of finding profit. "Investments inside of material assets instructions are the placements associated with funds into the particular mobile and real estate (land, complexes, furniture and so on). Investments inside financial assets are usually the placements involving funds into typically the securities bank company accounts and other monetary instruments".

We don't meet with typically the termini "investments" inside the earlier inexpensive dictionary, but we all meet the combined termini "investment policy" - the association of the industrial judgements, which guarantee key directions of typically the capital investments, typically the activities of their concentration in the particular determinant suburbs, on which the getting of planned prices of development involving the society production is depended, controlling and effectiveness, getting more and more production and profit of the national revenue for every shed Ruble". For these days, within the most genuine definitions, the money investments are bordered only by economical means, you should definitely just financial, but in addition typically the investment of organic, material-technical and educational resources occurs. Work resources take a good actual place in the investment method. They themselves satisfy a investment method.

A positive side associated with the discussed descriptions is that they will connect investment policy and capital placements (investments):

- affordable development according to the key directions to the concentration;

- providing great rates of economical growth;

- increasing an economical effectiveness, which is expressed:

a) by growing typically the throw off of the production and domestic income for every single lost Ruble;

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

c) by improving their very own technological structure;

d) by optimization associated with their further creation structure.


Compared along with such definition associated with the investments (capital placement) the meaning of investments in the particular dictionary attaching the "Economics" seems in order to be unimproved: "investments - the costs of gathering creation and industrial signifies and increasing stuff reserve". In this particular explanation current expenses (production expenses) are blended with the investment decision (capital) expense. In addition, not the expense expenses but (though the investments will be followed by the appropriate expenses) exactly advancing. It is different from the charges by that typically the means (means) are put by returning the advanced beliefs, also, under typically the conditions of development, to which the particular concept-advanced capital is certainly corresponding. the advancing may be realized in the money, natural-material and informational kinds.

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

"Human capital investment" : any activity supplied for rising the particular workers labour efficiency (in the approach of growing their own qualification and creating their abilities); with the expenses regarding improving the workers' education, health in addition to raising the range of motion with the working forces". It is quite useful to use the pointed out termini, though it needs one correction: the human capital investments never concern only workers, but also the particular servants, representatives associated with every sort of labour.
"Investment commodity, funds goods - a new capital. inches

Inside the official instructions of political economic system of the reformation time the funds investments are discussed as "expenses for creating new major funds and widening, reconstruction and renewing the active ones". In this description the investments (capital placements) during splitting up with the forms (types) of further production with the main money are bounded just by main cash (without increases involving the circulation finances and insurance reserves):

a) creating new ones;

b) extending;

c) reconstruction;

d) renewing.

Also, the particular concept of the particular industrial gathering looks, at the expenses of widening regarding basic, circulation finances and also insurance reserves takes place".

You'll meet below the definitions regarding investments from "the course of economy": the investments are called "placements of pay for into the standard capital (basic implies of production), stored, also other inexpensive objects and processes, which request long-termed influxing of material and cash means. "According to the label of capital into actual and money forms, the investments as well must be separated into material plus cash investments".

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

"They phone the whole investments associated with production an expense product, which is instructed towards keeping and even increasing the fundamental money (basic means) in addition to reserve. Total opportunities consist of two parts. One involving them is referred to as the depreciation; it presents important investment sources for compensation regarding renewal till the amount of before industrial usage, wearing out plus repairing of the basic means. Second consisting part of the total investments is symbolized by net opportunities - capital opportunities for the objective of increasing simple means". Depreciation will be not a payment resource of using the fundamental funds out and about, but it is the purposeful financial source regarding such resources.
Individual capital investment is definitely "a specific sort of investments, typically in education plus health protection".

"Real investments are the particular investments in the cost-effective branches and furthermore, they are sorts of economical activities, which often provide influxing the increases of actual capital, that is increasing material ideals with the industrial means". We can agree using such definition together with one specification that material and nonmaterial values too belong to the actual capital (wealth), subsequently science-researching experimental-construction outcomes, various information, training of he workers yet others. Such service as organization of the excitable online games, also the services of redistribution sociable wealth from personal person to a new (except charity).

"Financial investments represent placement of money into the gives, obligations, promissory information, other securities and instruments. Such investments, of course, conduct not give increases of the true material capital, however they help getting income, consequently at typically the expenses of modifying the span of the securities inside the time of speculation, or perhaps distinguishing the training course in different areas of sell in addition to purchasing". We talk about wholly such explanation, hence it follows that financial assets (if it is not followed by simply real investments because a result) perform not increase real material wealth and even real nonmaterial riches. According to this particular context, the phrase below is essential: "we must distinguish economical investments, which signify placement of typically the funds in the particular methods of selling and even purchasing the investments for the purpose of getting profit and financial purchases, which become funds and real, changed to real bodily capital. "

Within the "economical course" offered before long plus short-termed investments happen to be separated. Recognizing the existence of the bounds between these people, the authors ascribe short-termed investments to be able to "one month or more" investments. In case we get these kinds of conditioned criteria, that we can phone the investments which often overcome the words of some a few months, long-termed ones, which can be very doubtful and that we don't agree using it. A long-termed character of the particular fund placement is definitely a significant feature of the opportunities (short-term doesn't put together with the idea of investments). Principally, it could be far better to point out there quick compensative, midst termed compensative and even long-termed compensative investments:

- less after that 6 months -- quick compensative;

: from 6 weeks to the year plus a half -- middle termed compensative;

- more then a year and the half - long termed compensative.

We stopped at the explanation of the purchases of the capital job "economical course" regarding the special objective, as, within it the particular author tried to be able to discuss the principle of investments systemically and quite completely, herewith the publication is published at the moment.

We'll return in order to the discussion the explanation economical class of "investments" in different journals in the subsequent chapter. The explanations given here are quite enough intended for having a thought of the level of illuminating typically the given category inside the economical materials.
What conclusions could possibly be made according the meaning of the stated economical category found in the published works, except the produced notions and technical specs?

There is very deeply, concretely and thoroughly defined the idea of "investments", different explanations in the affordable literature; but mainly in most works concerning the investments reviewed by us right up until now, there will be not opened the particular essence of opportunities as an cost-effective category. In every single monograph, whether or not it has a subject investment, as a good economical category, presently there is given the particular definition, concept of investments. But, as the Academician Vasil Chantladze explains, "a concept can be a discussion, which proves anything about the specific feature of typically the researched object. The concept out of a great deal essential characteristic features represents only 1, plus essential within it is simply - definition".

Although the categories are much wider; it is usually "a key, the particular most fundamental principle of every science". Economical categories theoretically represent real, objectively existed productive relationships. A category may be the defining of situations of existed character types, connections, relations with the objective world. Generally, any educational process is fulfilled by categories, which provide opportunities for splitting the processes and occasions semantically, for expressing the explanations of the subject and realize their particular peculiarities and affordable relations of a material world.
Our own goal is precisely to substantiate investments -- as an economical category and furthermore, as a financial category within the narrow understanding.

Here we apply for another guide thesis made by the particular academician Vasil Chantladze: "every financial relationship is an cost-effective one and every single financial category is and economical a single, however, not every economical relation and cost-effective category is economic relation and economical category".
In the process of determining the investments, you should take in thoughts the perimeters of solutions, expenses and earnings, because investment, by one side, is usually the result associated with the manufacture's task, and, from an additional one, - the part of earnings, which, in this case, is not really useful for usage.
An additional occasion: it is usually advisable to discuss purchases of two aspects: as a category regarding reserve and circulation, which will echo exactly the link between "placement of funds" and "investments".

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