Because money changes the form of value (money, goods, commodity-money), they are constantly balancing between three subjects, the first of which are natural persons, the second - the economic entities, as well as a third favor public authorities.
Money - is the movement of money, what is happening in cash or cashless form.The basis of this process is the division of labor in society and the level of production.With the current currency has the opportunity to exchange the product of social production, as well as the provision of services and movement of capital.
principle of commodity-money relations based on the fact that they require a certain amount of financial receipts for treatment.
Money has two forms of priority:
- cash.This currency is used for the provision of goods and services, as well as for payment of pensions, salaries and other benefits to the population.This kind of money circulation is being implemented with the help of notes, metal money, checks, credit cards and bills.
- cashless.This form is characterized by the movement of the value of where the cash is not directly involved.The calculation is made on the accounts of credit institutions.
Money, based on non-cash payments, divided into two groups.The first of them concerns the payment of certain goods and services.As for the second, it includes payments to the budget (taxes), as well as budgetary payments, payment of interest for the loan and the repayment of bank loans.
Note that the cash and non-treatment has a certain connection, the existence of which is natural.The fact that money is characterized by the property of the transition from one form to another.Because types of treatment make financial turnover state, united by a common currency.
There is such a thing as the law of money circulation, which is formulated by Karl Marx.The essence of it is that it sets the amount of capital that is essential for the performance of the functions of communication and means of payment.
Money for the proper functioning requires a certain amount of capital, which depends on several factors, such as:
- sell goods and services
- levels of commodity prices and tariffs.
- The velocity of circulation of capital, which is influenced by both economic factors (development of production), and the structure of payment transactions.
amount of money in circulation is directly related to the conditions of production, if the division of labor in society is optimally developed, there is a high volume of goods sold and services provided.If productivity is high, the cost of products and prices will be much lower.Also, the amount of money is directly dependent on certain conditions, such as:
- on the amount of traded goods and services.
- the level of prices and billing services.
- the degree of development of cashless payment.
- From the velocity of money, among which there are also credit.
Money is characterized by a certain speed, which is determined by the number of revolutions of the monetary unit for a certain period of time.The fact that the same currency is passed from hand to hand and works to ensure that goods sold and services rendered.
At a time when in use are gold coins, their number is on the market is maintained spontaneously.In the role of the regulator acted sokrovischnaya function which was intended to create a balance between the goods needed for the management, and the money supply.When there is extra money, which they have done in the treasure.If the need arose, because the amount of goods increased, they were removed from there.
