Notes

Fund, Credit, Investments - Economical Categories
Scientific runs in the ideas of finances and credit, according in order to the specification in the research object, happen to be characterized to end up being many-sided and many-leveled.

The meaning of totality in the economical contact formed in the process of creation, distribution and use of finances, as money sources is widely spread. For illustration, in "the standard theory of finances" there are two explanations of finances:

1) "... Finances echo economical relations, formation of the funds regarding money sources, in the process associated with distribution and répartition of national receipts based on the distribution and even usage". This description has relatively in order to the conditions involving Capitalism, when cash-commodity relations gain common character;

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

First, finances overcome the bounds involving distribution and répartition service with the national income, though it is a standard foundation of finances. Furthermore, formation and consumption of the fall fund which is the part of economical domain, belongs not really to the supply and redistribution regarding the national salary (of newly shaped value during the year), but for the distribution of previously developed value.

This latest first shows up to be a part of value of main industrial finances, later it is definitely moved to the expense price of a ready product (that is to the value too) along with its recognition, and it is set the particular depression fund. Its source is used into account before hand as a depressive disorders kind in the consistence with the all set products cost price.

Second, main goal regarding finances is very much wider then "fulfillment of the state functions and obligations in addition to provision of circumstances for your widened further production". Finances are present around the state levels and in addition on the particular manufactures and branches' level too, plus in such problems, when the just about all section of the manufactures are not state.

Sixth v. M. Rodionova offers a different location about this subject matter: "real formation involving the financial resources commences on the level of distribution, once the value is recognized and concrete inexpensive forms of the realized value will be separated from the consistence from the profit". V. M. Rodionova makes an accent of finances, as distributing relations, when D. S. Moliakov underlines industrial base of finances. Although both of these people give quite substantiate discussion of funds, as a method of formation, circulation and use of the funds of money sources, that happens of the following associated with the finances: "financial cash relations, which often forms in the particular process of submission and redistribution associated with the partial value of the national prosperity and total social product, is related with the subjects regarding the economy and even formation and usage of the state cash incomes in addition to savings in the widened further creation, in the stuff stimulation of the particular workers for satisfaction in the society sociable and also other requests".

Inside the manuals involving the political economic system we meet with the following definitions of finances:
"Finances associated with the socialistic point out represent economical (cash) relations, with the help of which, in the approach of planned circulation of the incomes and savings the particular funds of funds causes of the state and socialistic produces are formed for guaranteeing the growth of the production, rising the material and even cultural level involving the people as well as for satisfying other general society requests".
"The system of development and usage involving necessary funds of cash resources intended for guarantying socialistic widened further production signify exactly the finances involving the socialistic society. And the wholeness of economical relationships arisen between condition, manufactures and agencies, branches, regions in addition to separate citizen based on the movement of funds funds make economical relations".
As we have seen, definitions regarding finances made simply by financiers and political economists do not vary greatly.
In each and every mentioned position you can find:

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

2) typically the definition of funds, as the approach to the creation plus usage of cash of cash sources on the level involving phenomenon.

3) Supply of finances as social product plus the value of nationwide income, definition involving the distributions prepared character, main objectives of the economic climate and economical relations, for servicing that it is applied.


If refuse the particular preposition "socialistic" inside the definition of finances, we may state, that it still keeps actuality. Many of us discuss with such classic definitions of funds, without an adjective "socialistic", in the present00 economical books. We might give many of these an elucidation: "finances represent cash sources of production plus usage, also cash relations appeared in the process of distributing values of formed economical merchandise and national wealth for formation and even further production associated with the cash earnings and savings in the economical subjects and even state, rewarding from the workers and satisfaction of the interpersonal requests". in this specific elucidation of budget like D. S. Moliakov and Sixth is v. M. Rodionov's descriptions, following the classic inheritance, we discuss with the widening of the financial foundation. These people concern "distribution and even redistribution of the particular associated with created cost-effective product, also the particular partial distribution of the value of nationwide wealth". This latest is very real, relatively to typically the procedure for privatization and even the transition in order to privacy and it is occasionally used in exercise in different nations around the world, for example , Great The uk and France.

"Finances - are cash sources, financial resources, their very own creation and movements, distribution and partage, usage, also economical relations, that happen to be conditioned by intercalculations involving the economical subjects, movement of funds sources, money blood flow and usage".
"Finances are the system of economical relations, which usually are connected with firm creation, submission and usage involving financial resources".

We all meet with completely innovational definitions of finances in Z .. Body and L. Merton's basis instructions. "Finance - is it doesn't science about how individuals lead shelling out `the deficit dollars resources and profits within the definite period of time of time. Hop over to this website are usually characterized by typically the expenses and profits which can be 1) separated on time, and 2) generally speaking, it is certainly impossible for taking them into account ahead of time neither by people who get decisions or any other person". "Financial theory comprises of amounts of the conceptions... which understands systematically the topics regarding distribution of the money resources relatively to be able to the time element; it also thinks quantitative models, with the help associated with which the estimation, placing into practice plus realization of typically the alternative variants associated with every financial decisions take place".

These types of basic conceptions plus quantitative models are widely-used at every degree of getting financial decisions, in the latest definition of finances, we fulfill with the following procession of the financial foundation: main performance of the funds is in the satisfaction of the people's demands; the subjects regarding economical activities of any kind (firms, also state body organs of every level) are directed towards satisfying this basic perform.

For that goals involving our monograph, it is important to be able to compare well-known meanings about finances, credit rating and investment, to be able to decide how and exactly how much it is usually possible to integrate the finances, assets and credit in to the one total portion.

Some researcher factor that credit may be the consisting part involving finances, if this is discussed from the position of essence and category. The other, more numerous team proves, that a good economical category of credit exists parallel to the inexpensive category of financial situation, through which it underlines impossibility of the credit's existence inside the consistence of finances.

N. E. Kuchukova underlined typically the independence of the particular group of credit and even notes that it is only its "characteristic feature the turned movement from the value, which is definitely not related to indication of the personal loan opportunities together along with the owners' rights".

N. D. Barkovski replies that working of money created an economical base for apportioning funds and credit as an independent type and gave surge to the credit score and financial associations. He noticed typically the Gnoseological roots of science in cash and credit, because the science about funds has business with the research of such economical relations, which often lean upon cash flow and credit.
A few discuss the most spread definitions involving credit. in typically the modern publications credit score appeared to end up being "luckier", then financial situation. For example, we meet with the particular following meaning of credit in the finance-economical dictionary: "credit may be the loan in typically the form of money and commodity using the conditions of coming back again, usually, by spending percent. Credit represents a form of movement of the bank loan capital and presents economical relations involving the creditor and even borrower".

This is usually the traditional description of credit. In the last dictionary of the particular economy we study: "credit is typically the system of cost-effective relations, which is definitely formed while typically the transmission of cash plus material means into the temporal utilization, as a rule under the circumstances of returning in addition to paying percent".
In the manual of the political economy printed under reduction regarding V. A. Medvedev the next definition will be given: "credit, as an economical type, expresses the produced relations between typically the society, labour communautaire and workers during formation and utilization of the loan cash, under the phrases of paying provide and returning, throughout transmission of sources for the temporal usage and accumulation".

Credit is talked about within the following approach in the sooner education-methodological manuals of political economy: "credit will be the system associated with money relations, which is created in the process regarding using and breaking down of temporarily free cash means of typically the state budget, unions, manufactures, organizations and population. Credit has an objective character. It really is used for supplying widened further generation of the state and even other needs. Credit rating differs from financial situation by the going back character, while auto financing of manufactures in addition to organizations by the particular state is satisfied without this condition".

We meet using the following classification if "the course of economy": "credit is surely an economical category, which usually represents relations, while the separate industrial agencies or persons send money means in order to each-other for secular usage under the conditions of coming back. Creation of credit is conditioned by simply a historical technique of fulfilling the economical and money associations, the form regarding which is the amount of money relation".

Following scientists give slightly various definitions of credit rating:
"Credit - is definitely a loan throughout the form of money or item, which is directed at the borrower by the creditor under the particular conditions of coming back again and paying the particular percentage rate by simply the borrower".
Credit is giving the temporally free funds sources or product as a financial debt to the defined conditions by price regarding fixed percentage. Hence, a credit may be the loan in typically the form of money or commodity. In the act of this loan's movement, a certain relations are created between a lender (the loan will be given by a new juridical of physical person, who offers certain cash while a debt) and the debtor.
Merging every definition known as above, we come to an idea, that credit is supplying money capital involving commodity as being a personal debt, for certain conditions and material supply under the price of firm percent rate. It presents definite economical relations between the participants of the method of capital creation. Necessity of the particular credit relations is definitely conditioned, from one side, by get together solid quantity of temporarily free cash sources, and coming from the second part, existence of asks for of them.

Nevertheless, at the same time we need to distinguish two resembling concepts: loan and credit. Loan will be characterized by:

to Here, the dialogue may touch on transmission of funds and also issues form one area (loaner) to one more (borrower): a)under the owning of the particular borrower and, with the same time, b) beneath the problems of returning equivalent amount or equal quantity and top quality of the things;

o The loaning of money might bear no interest;

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

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

o This may not bear no interest (if the assignment will not foresee something);

to Inside it creditor is not any individual, but a credit rating organization (at primaly, banks).
So, a credit is the bank credit. To be able to our mind, this is not right to make use of "credit" and "loan" as typically the synonyms.
Banking crediting is the union of relations in between bank (as a new creditor) and their borrower. These contact touch upon:

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

b) Its opportune returning;

c) Getting portion rate from the borrower for using the sources beneath his/her disposal.
The particular essential foundation associated with the credit importance as well as important element is existence regarding trust between typically the two sides (in Latin "credo", by which comes the phrase "credit", means "trust").
From the position of circulation regarding money forms (in the abstraction, historical process of formation economical relations and even social budget in addition to banking systems stated by them) evaluating different definitions of finances and credit rating, the paradox conclusion appears: credit may be the private occasion involving finances. And genuinely, from the location of movement of the money forms, budget represent the formation and using typically the funds of money means. Very often this kind of movements are satisfied without returning, although sometimes, it is definitely possible to give loans from the plan for the expense projects of some other needs. Also, whenever a manufacture or perhaps corporations use their very own cash funds plus we mean the particular finances of commercial subject, such usage can be realized while inside manufacture or corporation (there is usually no subject about returning delete word going back of the usage), so gratis beneath conditions of coming back again. This latest is referred to as commercial form because of transmitting the options to others, although in this celebration, is it doesn't element of financial system of the manufacture and company.

From the level of cash means activity, main character regarding credit is the process of formation and usage involving the funds involving cash means underneath the conditions regarding returning and, generally speaking, taking the value-percentage. If gating the credit value doesn't take place (even within the exceptional occasions), according to the movement form, credit score becomes a private event of finances, as through the net economic funds (consequently through the state budget) the loans which often bear no passions may be applied. If gating credit value takes location, by the visual appeal form, credit is definitely discussed to be financial modification.

Through the historical point of view, finances (especially in typically the sort of the state of hawaii budget) and credit (beginning with usury, later commercial plus banking) were developing differently for thinking of credit to be the portion of financial situation. Though, through the genetic-historical point of view, previous loaners, just before giving loan, desired gathering the stable capital not coming back, this is the net economic foundation. The banks analogously needed focus of the important own capital for influxing the consumers' implies as well as for getting better percentage rate beneath the conditions involving returning. Herewith, accurately on the economic basis, in the type of financial account (which later to some extent becomes loan fund) portion of the bank funds definitely seems to be the booking (insurance) part involving the fund, which often by nature is definitely financial and not necessarily loan. So in spite of the essential dissimilarities between finances in addition to credit form typically the genetic-historical point involving view, credit seems to be formed from funds and represent their particular modification.

From the essential position associated with expressing economical relationships of finances and credit, we meet up with with cardinal dissimilarities between these two groups. Which mostly indicated by the difference of the activity forms notwithstanding they are returnable or not. Finances express relations in typically the areas of distribution in addition to redistribution of public product and part of the national wealth. Credit expresses distribution of typically the appropriate value only in the section involving percentage given with regard to loan, while relating to the loan itself, an simply a temporal submission of money sources takes place.
Herewith, there exists a lot involving common between your budget and credit while from the essential point of look at, so based on the contact form of movement. As well, there is the significant distinction in between finances and credit rating as in the utilization, so in typically the form too. In accordance to this, generally there must be a new kind of usually economical category, that will consider finances and credit as a total unity, and in the court of this category itself, the parting of the specific essence of typically the finances and credit would occur.

Funding of the funds means is common to the researched cost-effective categories. It uses place in any separate system involving finances and credit, which has been touched on during the analyses involving defining finances and credit. Word combo "funding of the cash sources (fund formation)" reflects and even defines exactly fact and form of economical category of extra general character, the ones from finances and credit rating categories. Though inside the in economical texts and practice, it is quite uncomfortable to employ a termini, which in turn consists of 3 words. Also, "unloading" with an details hardens greatly the influxing into the particular circulation during the particular conditions of their strict substantiation in addition to thoroughness.
In the discussing context we consider:

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

2) discussing finances in narrow understanding under general traditional which means;

3) discussing budget, as funding from the cash means, on wide understanding, which usually concerns finances - in narrow meaning and credit : in complete meaning.
Termini "funding" and its particular equivalent "fund formation" are used by simply us as typically the purposeful structuring of cash means, which can be based on 2 poles - deposition pounds sources (gathering) and its usage with regard to definite purpose in the way regarding financing and crediting.
We now have established a new new termini instructions "finance-investment sphere" (FIS). Analyses about interrelation of finances and credit created by us give us an opportunity of proving, that will in the chosen termini, the term "financial" is used with the meaning regarding funding cash sources, its purposeful building. In this method we consider at the same time financial, credit in addition to investments' economical types.

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

The concept "investments" was brought into typically the native economical research from your West. Inside the Soviet economical science they regarding a long time frame used in the location "investments" the termini "capital placement", which expressed the consumption of the commercial elements in the sphere of real industrial activities during realization of capital assignments. From one look, this termini within its concept is certainly identical to the "investments", consequently you are able to make use of them as synonyms. Though the termini "investments" and "investing" have the advantage in the direction of the termini "capital placement" from linguistic and philological items of view, since they are expressed with a single word. This is usually not only affordable and comfortable along the way of working using the termini "investment" itself, but in addition it gives the opportunity of termini formation. More concretely: "investment process", "investment domain", "finance-investment sphere" instructions all these termini are more acceptable.
Changing native economical termini with international ones is purposeful, if this really issues (by keeping parallel use of the local termini for the particular inheritance). Though all of us must not transform native economical termini into foreign kinds all together, if by ordinal standard language easy to be able to explain private and narrow concrete procedures and elements obtain their own termini. The "movement" of these termini is approved inside the narrow specialist bounds, but their very own "spitting out" directly into the economical scientific research may turn economical language into the tangled slang.

A few discuss termini : "investment" and "capital placement's" usage throughout the economical literary works.
Investments are keeping of funds into the particular main and circulation capital for the purpose of getting profit. "Investments in material assets - will be the placements of funds into typically the mobile and real estate (land, complexes, furniture and thus on). Investments in financial assets usually are the placements associated with funds into the particular securities bank records and other monetary instruments".

Find out more don't meet with the particular termini "investments" inside the earlier inexpensive dictionary, but we all meet the put together termini "investment policy" - the partnership in the industrial judgements, which guarantee primary directions of the particular capital investments, typically the activities of their concentration in typically the determinant suburbs, upon which the getting of planned rates of development associated with the society manufacturing is depended, balancing and effectiveness, receiving more plus more production and profit regarding the national revenue for every shed Ruble". For today, within the most actual definitions, the capital investments are bordered only by monetary means, being used sole financial, but additionally the particular investment of natural, material-technical and educational resources occurs. Time resources take an actual place in the investment procedure. They themselves fulfill a investment method.

An optimistic side associated with the discussed explanations is that these people connect investment coverage and capital placements (investments):

- affordable development according in order to the key instructions to the attentiveness;

- providing high rates of affordable growth;

- elevating a cost-effective effectiveness, which in turn is expressed:

a) by growing the particular throw off of the production and country wide income for every single lost Ruble;

b) by fulfilling typically the branch structure involving the investments;

c) by improving their own technological structure;

d) by optimization regarding their further generation structure.

Compared along with such definition associated with the investments (capital placement) the meaning regarding investments in the particular dictionary attaching the "Economics" seems in order to be unimproved: "investments - the expenses of gathering generation and industrial implies and increasing materials reserve". In this classification current expenses (production expenses) are blended with the investment (capital) expense. Furthermore, not the expense expenses but (though the investments will be followed by the particular appropriate expenses) specifically advancing. It varies from the expenses by that the particular means (means) happen to be put by going back the advanced values, also, under typically the conditions of progress, to which the concept-advanced capital is corresponding. the improving may be realized in the money, natural-material and informational kinds.

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

"Human capital investment" instructions any activity provided for rising typically the workers labour production (in the method of growing their own qualification and developing their abilities); at the expenses involving improving the workers' education, health and even raising the mobility in the working forces". It is very useful to be able to use the mentioned termini, though it needs one correction: a persons capital investments usually do not concern only personnel, but also typically the servants, representatives of every sort of your time.
"Investment commodity, capital goods - some sort of capital. "

Inside the official manuals of political overall economy of the reformation time the capital investments are reviewed as "expenses with regard to creating new primary funds and widening, reconstruction and restoring the active ones". In this explanation the investments (capital placements) during splitting up with the forms (types) of further manufacturing from the main money are bounded just by main money (without increases associated with the circulation funds and insurance reserves):

a) creating fresh ones;

b) extending;

c) reconstruction;

d) renewing.

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

You'll meet beneath the definitions associated with investments from "the course of economy": the investments are "placements of account into the standard capital (basic means of production), stores, also other inexpensive objects and steps, which request long-termed influxing of fabric in addition to cash means. "According to the label of capital into physical and money varieties, the investments as well must be broken down into material and cash investments".

These people apportion investment item, to which belong industrial and nonindustrial building objects, vehicles purposed for shifting or widened technical park and the furniture, increasing stored yet others.

"They phone the total investments of production an expense product, that is directed towards keeping and increasing the standard capital (basic means) plus reserve. Total assets consist of a couple of parts. One of them is known as typically the depreciation; it symbolizes important investment solutions for compensation associated with renewal till the degree of before industrial utilization, wearing out in addition to repairing of typically the basic means. 2nd consisting section of the total investments is displayed by net assets - capital purchases for the objective of increasing standard means". Depreciation is definitely not a settlement resource of wearing the standard funds out and about, but it is the purposeful financial source of such resources.
Individual capital investment is definitely "a specific type of investments, generally in education and even health protection".

"Real investments are the investments in the cost-effective branches and in addition, they are kinds of economical activities, which in turn provide influxing the increases of true capital, that will be increasing material ideals with the industrial means". We could agree with such definition along with one specification that will material and nonmaterial values too fit in to the true capital (wealth), consequently science-researching experimental-construction outcomes, various information, schooling of he personnel yet others. Such support as organization of the excitable video games, also the service of redistribution interpersonal wealth from one private person to a new (except charity).

"Financial opportunities represent keeping of cash into the shares, obligations, promissory paperwork, other securities and instruments. Such purchases, of course, conduct not give raises of the actual material capital, however they help getting profit, consequently at the expenses of altering the course of the securities within the moment of speculation, or even distinguishing the program in different locations of sell and even purchasing". We talk about wholly such description, hence it employs that financial assets (if it is not followed by real investments since a result) do not increase real material wealth and real nonmaterial wealth. According to this kind of context, the appearance below is vital: "we must distinguish monetary investments, which symbolize placement of the funds in typically the methods for selling plus purchasing the securities for the purpose of getting income and financial investments, which become money and real, changed to real actual capital. "

Within the "economical course" offered before long in addition to short-termed investments are usually separated. Recognizing the particular existence of the bounds between them, the authors assign, short-termed investments in order to "one month or more" investments. If we get this kind of conditioned criteria, that will we can call up the investments which usually overcome the conditions of some several weeks, long-termed ones, which is very doubtful and we don't agree using it. A long-termed character of the particular fund placement is a significant feature of the assets (short-term doesn't combine with the concept of investments). Principally, it would be better to point out quick compensative, midst termed compensative and even long-termed compensative investments:

- less next 6 months -- quick compensative;

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

- more then your year and some sort of half - lengthy termed compensative.

We stopped with the description of the purchases of the capital function "economical course" for the special goal, as, within it the particular author tried to discuss the strategy of investments systemically and quite entirely, herewith the book is published just now.

We'll return in order to the topic the explanation economical category of "investments" in different journals in the pursuing chapter. The descriptions given here usually are quite enough for having a belief of the levels of lighting up the given category in the economical books.
What conclusions could possibly be made according the definition of the pointed out economical category inside the published performs, except the manufactured notions and specs?

There is really deeply, concretely and even thoroughly defined the concept of "investments", different definitions in the cost-effective literature; but typically in most works about the investments mentioned by us till now, there is not opened the essence of opportunities as an affordable category. In just about every monograph, whether or not this has a subject investment, as an economical category, right now there is given only the definition, concept involving investments. But, while the Academician Vasil Chantladze explains, "a concept is a discussion, which proves something about the unique feature of the researched object. A concept from a great deal essential characteristic capabilities represents merely one, and essential inside it is just - definition".

Nevertheless the categories are wider; it is usually "a key, typically the most fundamental principle of every science". Economical categories in theory represent real, objectively existed productive contact. A category will be the defining of occasions of existed heroes, connections, relations in the objective world. Typically, any educational method is fulfilled from the categories, which provide opportunities for dividing the processes in addition to occasions semantically, with regard to expressing the explanations of a subject in addition to realize their specific peculiarities and cost-effective relations of a new material world.
The goal is exactly to be able to substantiate investments : as an economical category and furthermore, as a financial category inside the narrow comprehending.

Here we apply for another manual thesis created by the academician Vasil Chantladze: "every financial regards is an cost-effective one and just about every financial category is definitely and economical a single, although not every economical relation and inexpensive category is financial relation and monetary category".
In the process of identifying the investments, it is important to take in thoughts the sides of sources, expenses and earnings, because investment, by one side, is the result of the manufacture's exercise, and, from one other one, - some sort of part of revenue, which, in this kind of case, is not necessarily useful for usage.
Another occasion: it will be advisable to talk about purchases of two aspects: as being a category regarding reserve and stream, which will reveal exactly the relationship between "placement of funds" and "investments".

As we've pointed out above, recently, on the well-known Soviet literature the principles of "the keeping of funds" and "investments" were accepted as the synonyms and worried to get investment involving sources for additional production of the primary funds and development of the return funds. We discuss with such understanding associated with the concept of "investment" (here, they separate a few types of the investment decision expenses: investments in the basic capital of investments, investments in the house developing and investments within the reserves) on the modern cost-effective publications and that is mostly applied on the macro quality within a statistical analyze of economical processes. In this particular concrete event investment is typically the category of hold.

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