Scientific works within the theories of funds and credit score, in line with the specification of the analysis object, are characterized to be many-sided and many-leveled.
The definition of totality of the economical relations is shaped within the strategy of formation, distribution, and utilization of funds, as cash sources are broadly unfolded. For instance, in “the overall idea of funds” there are two definitions of funds:
1) “…Funds replicate economical relations, formation of the funds of cash sources, within the strategy of distribution and redistribution of nationwide receipts in line with the distribution and utilization”. This definition is given compared to the circumstances of Capitalism when cash-commodity relations achieve common character;
2) “Funds symbolize the formation of centralized advert decentralized cash sources, economical relations comparatively with the distribution and utilization, which serve for the success of the state capabilities and obligations and likewise provision of the circumstances of the widened additional manufacturing”. This definition is introduced without displaying the surroundings of its motion. We share partly such rationalization of funds and assume expedient to make some specification.
First, funds overcome the bounds of distribution and redistribution service of the nationwide earnings, although it’s a primary basis of funds. Additionally, the formation and utilization of the depreciation fund which is the part of the monetary area belong to not the distribution and redistribution of the nationwide earnings (of newly shaped worth throughout 12 months), however to the distribution of already developed worth.
This newest first seems to be part of the worth of most important industrial funds, later it’s moved to the price value of a prepared product (that’s to the worth too) and after its realization, and it’s set the despair fund. Its supply is taken into consideration earlier than hand as a despair type within the consistency of the prepared merchandise price value.
Second, the most important objective of funds is way wider than “success of the state capabilities and obligations and provision of circumstances for the widened additional manufacturing”. Funds exist on the state degree and likewise on the manufactures and branches’ degree too, and in such circumstances when essentially the most a part of the manufactures should not state.
V. M. Rodionova has a special place about this topic: “actual formation of the monetary assets begins on the stage of distribution when the worth is realized and concrete economical types of the realized worth are separated from the consistency of the revenue”. V. M. Rodionova makes an accent of funds, as distributing relations when D. S. Moliakov underlines the industrial basis of funds. Although each of them gives fairly substantiate dialogue of funds, as a system of formation, distribution, and utilization of the funds of cash sources, that comes out of the next definition of the funds: “monetary money relations, which kinds within the strategy of distribution and redistribution of the partial worth of the national wealth and complete social product, is expounded with the topics of the economic system and formation and utilization of the state money incomes and financial savings within the widened additional manufacturing, within the materials stimulation of the employees for satisfaction of the society social and different requests”.
Within the manuals of the political-economic system we meet with the next definitions of funds:
“Funds of the socialistic state symbolize economical (money) relations, with the assistance of which, in the best way of deliberate distribution of the incomes and financial savings the funds of cash sources of the state and socialistic manufactures are shaped for guaranteeing the expansion of the manufacturing, rising the fabric and cultural degree of the folks and for satisfying different normal society requests”.
“The system of creation and utilization of vital funds of money assets for guarantying socialistic widened additional manufacturing symbolize precisely the funds of the socialistic society. And the totality of economical relations arisen between state, manufactures and organizations, branches, areas and separate citizen in line with the motion of money funds make monetary relations”.
As we have seen, definitions of funds made by financiers and political economists don’t differ drastically.
In each mentioned place there are:
1) expression of essence and phenomenon within the definition of funds;
2) the definition of funds, because the system of the creation and utilization of funds of money sources on the extent of the phenomenon.
3) Distribution of funds as social product and the worth of nationwide earnings, the definition of the distributions deliberate character, most important targets of the economic system and economical relations, for servicing of which it’s used.
I refuse the preposition “socialistic” within the definition of funds, we could say, that it nonetheless retains actuality. We meet with such conventional definitions of funds, without an adjective “socialistic”, within the trendy economical literature. We could give such an elucidation: “funds symbolize money assets of manufacturing and utilization, additionally money relations appeared within the strategy of distributing values of shaped economical product and nationwide wealth for the formation and additional manufacturing of the money incomes and financial savings of the economical topics and state, rewarding of the employees and satisfaction of the social requests”. on this elucidation of funds like D. S. Moliakov and V. M. Rodionov’s definitions, following the standard inheritance, we meet with the widening of the monetary basis. They concern “distribution and redistribution of the worth of created economical product, additionally the partial distribution of the worth of nationwide wealth”. This newest may be very precise, comparatively to the method of privatization and the transition to privateness, and is periodically utilized in applications in several nations, for instance, Nice Britain and France.
“Funds – are money sources, monetary assets, their creation and motion, distribution and redistribution, utilization, additionally economical relations, that are conditioned by entering calculations between the economical topics, the motion of money sources, cash circulation and utilization”.
“Funds are the system of economical relations, that are related with agency creation, distribution, and utilization of monetary assets”.
We meet with completely innovational definitions of funds in Z. Physique and R. Merton’s foundation manuals. “Finance – it’s the science about how the folks lead spending `the deficit money assets and incomes within the particular time period. The monetary choices are characterized by the bills and incomes that are 1) separated in time, and a pair of) as a rule, it’s not possible to consider them beforehand neither by those that get choices nor some other particular person”. “Monetary idea consists of numbers of the conceptions… which learns systematically the topics of distribution of the money assets comparatively to the time issue; it additionally considers quantitative fashions, with the assistance of which the estimation, placing into apply and realization of the choice variants of each monetary choices happen”.
These primary conceptions and quantitative fashions are used at each degree of getting monetary choices, however within the newest definition of funds, we meet with the next doctrine of the monetary basis: the most important perform of the funds is within the satisfaction of the folks’ requests; the topics of economical actions of any type (companies, additionally state organs of each degree) are directed in the direction of fulfilling this primary perform.
For the targets of our monograph, it is very important to examine well-known definitions about funds, credit score, and funding, to determine how and the way a lot it’s doable to combine the funds, investments, and credit score into one complete half.
Some researchers factor that credit score is the consisting a part of funds, whether it is mentioned from the place of essence and class. The opposite, extra quite a few groups prove, that a cheap class of credit score exists parallel to the economical class of funds, by which it underlines the impossibility of the credit score’s existence within the consistence of funds.
N. is Ok. Kuchukova underlined the independence of the class of credit score and notes that it’s only its “attribute function the turned movement of the worth, which isn’t associated with transmission of the mortgage alternatives along with the homeowners’ rights”.
N. D. Barkovski replies that the functioning of cash created a cheap foundation for apportioning funds and credit score as an unbiased class and gave rise to the credit score and monetary relations. He observed the Gnoseological roots of science in cash and credit score because the science about funds has enterprise with the analysis of such economical relations, which lean upon money circulation and credit score.
Let’s talk about essentially the most unfold definitions of credit score. within the trendy publications, credit scores seemed to be “luckier”, than funds. For instance, we meet with the next definition of credit score within the finance-economical dictionary: “credit score is the mortgage within the type of money and commodity with the circumstances of returning, normally, by paying %. A credit score represents a type of motion of the mortgage capital and expresses economic relations between the creditor and borrower”.
That is the standard definition of credit score. Within the earlier dictionary of the economic system, we learn: “credit score is the system of economical relations, which is shaped whereas the transmission of money and materials means into the temporal utilization, as a rule underneath the circumstances of returning and paying %”.
Within the guidelines of the political-economic system printed underneath discount of V. A. Medvedev the next definition is given: “credit score, as a cheap class, expresses the created relations between the society, labor collective and staff throughout formation and utilization of the mortgage funds, underneath the phrases of paying current and returning, throughout the transmission of sources for the temporal utilization and accumulation”.
A credit score is mentioned within the following method within the earlier education-methodological manuals of the political-economic system: “credit score is the system of cash relations, which is created within the strategy of utilizing and mobilization of quickly free money technique of the state finances, unions, manufactures, organizations, and inhabitants. Credit score has a goal character. It’s used for offering widened additional manufacturing of the state and different wants. Credit score differs from funds by the returning character, whereas financing of manufactures and organizations by the state is fulfilled without this situation”.
We meet with the next definition of “the course of the economic system”: “credit score is a cheap class, which represents relations, whereas the separate industrial organizations or individuals transmit cash means to each other for temporal utilization underneath the circumstances of returning. Creation of credit score is conditioned by a historic strategy of fulfilling the economical and cash relations, the type of which is the cash relation”.
Following scientists give barely completely different definitions of credit score:
“Credit score – is a mortgage within the type of cash or commodity, which is given to the borrower by a creditor underneath the circumstances of returning and paying the proportion charge by the borrower”.
The credit score is giving the temporally free cash sources or commodity as a debt for the outlined phrases by the worth of a mounted share. Thus, a credit score is a mortgage within the type of cash or commodity. Within the strategy of this mortgage’s motion, particular relations are shaped between a creditor (the mortgage is given by a juridical of a bodily particular person, who provides sure money as a debt) and the debtor.
Combining each definition named above, we come to the concept, that credit score is giving cash capital of commodity as a debt, for sure phrases and materials provision underneath the worth of agency share charge. It expresses particular economical relations between the individuals of the method of capital formation. The necessity of the credit score relations is conditioned, from one aspect, by gathering a stable amount of quickly free cash sources, and from the second aspect, the existence of requests of them.
Although, at an identical time we should distinguish two resembling ideas: mortgage and credit score. A mortgage is characterized by:
o Right here, the dialogue could contact upon transmission of cash and likewise issues type one aspect (loaner) to a different (borrower): a)underneath the proudly owning of the borrower and, on the identical time, b) underneath the circumstances of returning identical quantity or identical amount and high quality of the issues;
o The loaning of cash could bear no curiosity;
o Any particular person could participate in it.
With the distinction with a mortgage, credit score, which is by some means a personal event of the mortgage, represents:
o One aspect (loaner) provides to the second (borrower) solely cash, and _ for temporal utilization;
o It could not bear any curiosity (if the project does not foresee one thing);
o In it creditor isn’t any particular person, however a credit score group (in the first place, banks).
So, a credit score is the financial institution’s credit score. To our thoughts, it isn’t right to make use of “credit score” and “mortgage” because of the synonyms.
Banking crediting is the union of relations between a financial institution (as a creditor) and its borrower. These relations contact upon:
a) Giving a sure amount of cash to the borrower for a particular function (although, we meet with the so-called free credit, goals, and objects of crediting should not appoint within the project);
b) It’s opportune returning;
c) Getting a share charge from the borrower for utilizing the sources underneath his/her disposal.
The important basis of the credit score essence and its necessary component is the existence of belief between the 2 sides (in Latin “credo”, from which comes the phrase “credit score”, which means “belief”).
From the place of circulation of cash kinds (within the abstraction, historic strategy of formation economical relations and social finances and banking programs expressed by them) evaluating completely different definitions of funds and credit score, the paradox conclusion seems: credit score is the personal event of funds. And really, from the place of motion of the cash kinds, funds symbolize the method of formation and utilization of the funds of money means. Fairly often such actions are fulfilled without returning, however, typically, it’s doable to present loans from the finances for the funding initiatives of different wants. Additionally, when a manufacture or companies use their money funds and we imply the funds of a business topic, such utilization could also be realized as contained in the manufacture or company (there isn’t a topic about returning or not returning of the utilization), so free of charge underneath circumstances of returning. This newest is known as business type due to transmitting the sources to others, however, even on this event, it’s the component of the monetary system of the manufacture and company.
From the purpose of money means motion, the most important character of credit score is the method of formation and utilization of the funds of money means underneath the circumstances of returning and, as a rule, taking the value-percentage. If gating the credit score worth does not happen (even within the distinctive events), in line with the motion type, credit score turns into a personal event of funds, as from the online monetary funds (consequently from the state finances) the loans which bear no pursuits could also be used. If gating credit score worth takes place, by the look’s type, a credit score is mentioned to be a monetary modification.
From the historic viewpoint, funds (particularly within the form of the state finances) and credit score (starting with usury, later business, and banking) have been growing otherwise for contemplating credit score to be a part of funds. Although from the genetic-historical viewpoint, earlier loaners, earlier than giving a mortgage, wanted to gather the everlasting capital not returning, that’s the internet monetary basis. The banks analogously wanted the focus of the necessary personal capital for influencing the customers’ means and for getting a larger share charge underneath the circumstances of returning. Herewith, precisely on the monetary foundation, within the form of monetary fund (which later partially turns into mortgage fund) a part of the financial institution capital seems to be the reservation (insurance coverage) a part of the fund, which by nature is monetary and never mortgage. So however the important distinctions between funds and credit score type the genetic-historical viewpoint, credit score seems to be shaped from funds and symbolize their modification.
From the important place of expressing economic relations of funds and credit score, we meet with cardinal distinctions between these two classes. This is largely expressed by the excellence of the motion kinds however they’re returnable or not. Funds specific relations within the elements of distribution and redistribution of social product and a part of the nationwide wealth. Credit score expresses distribution of the suitable worth solely within the part of share given for mortgage, whereas in line with the mortgage itself, the solely temporal distribution of cash sources takes place.
Herewith, there’s lots of widespread between the funds and credit score as from the important viewpoint, so in line with the type of motion. At the identical time, there’s a vital distinction between funds and credit score as within the essence, so within the type too. In keeping with this, there should be a type of typically economical class, which can take into account funds and credit score as a complete unity, and within the bounds of this class itself, the separation of the particular essence of the funds and credit score would happen.
Funding of the money means is widespread to the researched economic classes. It takes place in any separate system of funds and credit score, which have been touched upon through the analyses of defining funds and credit score. Phrase mixture “funding of the money sources (fund formation)” displays and defines precisely the essence and type of economical class of extra normal character, these of funds and credit score classes. Although within the in economical texts and apply, it is extremely uncomfortable to make use of termini, which consists of three phases. Additionally, “unloading” with data hardens drastically its influence into the circulation even within the circumstances of its strict substantiation and thoroughness.
Within the discussing context we take into account:
1) large and slim understanding of an economical class of the funds;
2) discussing funds in slim understanding underneath normal conventional which means;
3) discussing funds, as funding of the money means, in large understanding, which issues funds – is slim which means and credit score – in full which means.
Termini “funding” and its equal “fund formation” are utilized by us because the purposeful structuring of money means, which is predicated on two poles – accumulation of cash sources (gathering) and its utilization for particular function in the best way of financing and crediting.
Now we have established a brand new terminus – the “finance-investment sphere” (FIS). Analyses about interrelation of funds and credit score made by us give us a chance of proving, that within the given termini, the phrase “monetary” is used with the means of funding money sources, it’s purposeful structuring. In this course, if we take into account the identical time monetary, credit score, and investments’ economical classes.
Let’s sum up the center outcomes of discussing a new idea – the “finance-investment sphere” and talk about its funding consisting components.
The idea of “investments” was introduced into the native economical science from the West. Within the Soviet economical science they for a very long time used within the place “investments” the termini “capital placement”, which expressed the utilization of the economic components within the sphere of actual industrial actions throughout the realization of capital initiatives. From one look, this terminus in its idea is equivalent to the “investments”, consequently, it’s doable to make use of them as synonyms. Although the termini “investments” and “investing” have the benefit in the direction of the termini “capital placement” from linguistic and philological factors of view, as a result of they’re expressed with one phrase. This isn’t solely economical and comfy within the strategy of working with the termini “funding” itself, but in addition, it provides a chance of termini formation. Extra concretely: “funding course of”, “funding area”, “finance-investment sphere” – all these termini are rather more acceptable.
Altering native economical termini with international ones is purposeful if it actually issues (by conserving parallel utilization of the native termini for the inheritance). Although we should not change native economical termini into international ones all collectively, when by ordinal conventional language simple to elucidate personal and slim concrete processes and components get their very own termini. The “motion” of those termini is authorized within the slim skilled bounds, however, their “spitting out” into the economical science could flip economical language into the tangled slang.
Let’s talk about termini – “funding” and “capital placement’s” utilization within the economical literature.
Investments are the placement of funds into the principle and circulation capital for the aim of getting revenue. “Investments in materials belongings – are the placements of funds into the cell and actual property (land, buildings, furnishings, and so forth). Investments in monetary belongings are the placements of funds into the securities financial institution accounts and different monetary devices”.
We do not meet with the termini “investments” within the earlier economical dictionary, however, we meet the mixed termini “funding coverage” – the union of the economic choices, which assure most important instructions of the capital investments, the actions of their focus within the determinant suburbs, on which the reaching of deliberate charges of growth of the society manufacturing is depended, balancing and effectiveness, getting increasingly more manufacturing and revenue of the nationwide earnings for each misplaced Ruble”. For at the moment, in essentially the most precise definitions, the capital investments are bounded solely by monetary means, when not solely monetary, but in addition the funding of pure, material-technical, and informational assets takes place. Labor assets take a precise place within the funding course. They themselves fulfill this or that funding course.
A constructive aspect of the mentioned definitions is that they join funding coverage and capital placements (investments):
– economical growth in line with the important thing instructions to the focus;
– offering excessive charges of economical progress;
– elevating cheap effectiveness, which is expressed:
a) by rising the throw off of the manufacturing and nationwide earnings for each misplaced Ruble;
b) by fulfilling the department construction of the investments;
c) by bettering their technological construction;
d) by optimization of their additional manufacturing construction.
In contrast with such definition of the investments (capital placement) the definition of investments within the dictionary attaching the “Economics” appears to be unimproved: “investments – the bills of gathering manufacturing and industrial means and growing materials reserve”. On this definition present bills (manufacturing bills) are combined with the funding (capital) expense. Additionally, not the funding bills, however (although the investments are adopted by the suitable bills) precisely advancing. It differs from the bills by that the means (means) are put by returning the superior values, additionally, underneath the circumstances of progress, to which the concept-advanced capital is corresponding. the advancing could also be realized within the cash, natural-material, and informational kinds.
Besides the termini “investments”, there are two extra termini associated with the funding. They’re proven beneath.
“Human capital funding” – any exercise offered for rising the employee’s labor productiveness (in the best way of raising their qualification and growing their skills); on the bills of bettering the employees’ schooling, well-being, and elevating the mobility of the working forces”. It is vitally helpful to make use of the talked about termini, although it wants one correction: the human capital investments don’t concern solely staff but in addition the servants, representatives of each type of labor.
“Funding commodity, capital items – a capital.”
Within the official manuals of the political-economic system of the reformation time, the capital investments are mentioned as “bills for creating new most important funds and widening, reconstruction and renewing the lively ones”. On this definition, the investments (capital placements) throughout separation of the kinds (varieties) of additive manufacturing of the principle funds are bounded solely by most important funds (without will increase of the circulation funds and insurance coverage reserves):
a) creating new ones;
Additionally, the idea of the economic gathering seems, on the bills of widening of primary, circulation funds and likewise, insurance coverage reserves take place”.
You will meet beneath the definitions of investments from “the course of the economic system”: the investments are referred to as “placements of fund into the fundamental capital (primary technique of manufacturing), reserves, additionally different economical objects and processes, which request long-termed influencing of fabric and money means. “In keeping with the division of capital into bodily and cash kinds, the investments too should be divided into materials and money investments”.
They apportion funding commodity, to which belong industrial and nonindustrial constructing objects, autos purposed for altering or widened technical park and the furnishings, growing reserves and others.
“They name the full investments of manufacturing a funding product, which is directed in the direction of conserving and growing the fundamental capital (primary means) and reserve. Complete investments encompass two components. Considered one of them is known as the depreciation; it represents necessary funding assets for compensation of renewal until the extent of earlier than industrial utilization, sporting out and repairing of the fundamental means. Second, consisting a part of the full investments is represented by internet investments – capital investments for the aim of accelerating primary means”. Depreciation isn’t a compensation useful resource for sporting the fundamental funds out, however, it’s the purposeful monetary supply of such assets.
Human capital funding is “a particular type of investment, largely in schooling and well-being safety”.
“Actual investments are the investments within the economical branches and likewise, they’re sorts of economical actions, which offer including the will increase of actual capital, that’s growing materials values of the economic means”. We can agree with such definition with one specification that materials and nonmaterial values too belong to the actual capital (wealth), consequently, science-researching experimental-construction outcomes, numerous data, schooling of he staff and other such such service is a group the excitable video games, additionally the service of redistribution social wealth from one person particular person to a different (besides charity).
“Monetary investments symbolize placement of funds into the shares, obligations, promissory notes, different securities, and devices. Such investments, in fact, don’t give will increase the actual materials capital, however, they assist in getting revenue, consequently on the bills of fixing the course of the securities within the time of hypothesis, or distinguishing the course somewhere else of promoting and buying”. We share wholly such definition, therefore it follows that monetary investments (if it isn’t adopted by actual investments in consequence) don’t enhance actual materials wealth and actual nonmaterial wealth. In keeping with this context, the expression beneath is essential: “we should distinguish monetary investments, which symbolize placement of the funds within the methods of promoting and buying the securities for the aim of getting revenue and monetary investments, which turn out to be money and actual, moved to actual bodily capital.”
Within the “economical course” quoted earlier than lengthy and short-termed investments are separated. Recognizing the existence of the bounds between them, the authors ascribe short-termed investments to “one month or extra” investments. If we get such conditioned standards, that we can name the investments which overcome the phrases of some months, long-termed ones, which may be very uncertain and we do not agree with it. A protracted-termed character of the fund placement is a major function of the investments (short-term does not mix with the idea of investments). Principally, it might be higher to level out fast compensative, center termed compensative and long-termed compensative investments:
– much less than 6 months – fast compensative;
– from 6 months as much as the 12 months and a half – center termed compensatively;
– extra than the 12 months and a half – lengthy termed compensatively.
We stopped on the definition of the investments within the capital work “economical course” for the particular function, as, in it, the writer tried to debate the idea of investments systemically and fairly fully, herewith the e-book is printed simply now.
We’ll return to the dialogue the definition economic class of “investments” in several publications within the following chapter. The definitions given listed below are fairly sufficient for having a notion of the extent of lighting up the given class within the economical literature.
What conclusions could also be made by the definition of the talked about economical class within the printed works, besides the made notions and specs?
There may be fairly deeply, concretely, and completely outlined the idea of “investments”, completely different definitions within the economical literature; however, largely in each work in regards to the investments mentioned by us till now, there are not opened the essence of investments as a cheap class. In each monograph, even when it has a title funding, as a cheap class, there are given solely the definition, idea of investments. However, because the Academician Vasil Chantladze explains, “an idea is a dialogue, which proves one thing in regards to the distinguishing function of the researched object. An idea out of a lot important attribute options represents just one, and important in its only – definition”.
However the classes are a lot wider; it’s “a key, essentially the most basic idea of each science”. Economical classes theoretically symbolize actual, objectively existed productive relations. A class is the definition of events of existed characters, connections, relations of the target world. Usually, any instructional course is fulfilled by the classes, which give alternatives for dividing the processes and events semantically, for expressing the definitions of a topic, and understand their particular peculiarities and economical relations of a fabric world.
Our objective is strictly to substantiate investments – as a cheap class and likewise, as a monetary class within the slim understanding.
Right here we apply for an additional guide thesis made by the academician Vasil Chantladze: “each monetary relation is a cheap one and each monetary class is an economical one, however not each economical relation and economical class is monetary relation and monetary class”.
Within the strategy of defining the investments, it is very important to soak up thoughts the edges of assets, bills, and incomes, as a result of the funding, from one aspect, is the results of the manufacture’s exercise, and, from one other one, – part of earnings, which, on this case, isn’t used for utilization.
One other event: it’s advisable to debate investments in two elements: as a class of reserve and circulation, which can replicate precisely the connection between “placement of funds” and “investments”.
As we have talked about above, not way back, within the well-known Soviet literature the ideas of “the location of funds” and “investments” have been accepted to be the synonyms and anxious to be funding of sources for additional manufacturing of the principle funds and formation of the turnover funds. We meet with such understanding of the idea of “funding” (right here, they separate three sorts of funding bills: investments within the primary capital of investments, investments in the home construction, and investments within the reserves) within the trendy economical publications, and it’s largely used on the macro degree throughout a statistical analyze of economical processes. On this concrete event funding is the class of reserve.