money as defined will be discussed below, often called the language of the market, because with their help made the circuit of resources and goods.Consumers buy goods from manufacturers, which then give the cash for the resources provided to them by the public.Properly organized and clearly working monetary system ensures the stability of the national production, price stability and full employment.
So what is money?The economic definition states that a measure of the value of goods.It is through the money we measure and compare the cost of various services of a product.But there is also such a thing as "the price of money."Defining it is difficult to give.It all depends on what we mean by the word "money."The fact that this financial term is multifaceted, and one's definition above, fully realize the meaning of the word impossible.Let's understand what money is.And what they are.
These different money.Determination M1
Neither economists nor the officials did not come together in a single opinion about the components of M1.This symbol indicates the money supply, which consists of 2 elements:
1. Cash (both paper and metal), operated by all economic agents, in addition to banking institutions.
2. Deposits (check deposits) in savings banks, commercial banks and other savings institutions, which can write checks.
Thus, the cash - this is debt of the state and its agencies, and check deposits - liabilities savings institutions and commercial banks.
What is money?The definition of M2
official credit agencies was proposed broader formulation.M2 = M1 + savings accounts (beschekovye) + money market deposit accounts + time deposits (less than 100 000 $) + money market mutual funds.The main point is that all the components of M2 category, you can easily and without any loss to convert to cash or check deposits.
Money: definition of M3
The third interpretation - M3 - is recognized by the fact that fixed-term deposits (over $ 100 000), which are commonly found in the possession of entrepreneurial structures in the form of certificates of deposit, too, can easily apply to the check deposits.In these certificates have their own market, where they can buy or sell at any time.But it is worth remembering about the risk of possible losses.Adding to the term deposits category M2, we get a third formula to determine the money: M3 = M2 + time deposits (over $ 100,000).
Causes currency
Causes of conflict lie in the product, but rather in the contradiction between the cost of the product and its use value:
- at the cost of absolutely everything the consumer goods commensurate quantitatively and qualitatively to diverse and have varying degrees of usefulness.Pies and boots not only look, but also made by representatives of various professions;
- at the price of comparable goods quantitative and homogeneous.Therefore, the exchange can be compared and equated with the most exotic things.
internal contradictions of the commodity itself manifest only in the process of exchange.And it can not be evaluated without placing on the market.The only method by which it is possible to measure rates - to compare it with other goods.Expression of the cost of production of goods referred to as exchange-value, phased development which leads to external polarities deployment of internal trade conflicts and, in general, - to oppose money and goods.
