Scientific works within the theories of funds and credit score, based on the specification of the analysis object, are characterised to be many-sided and many-leveled.
The definition of totality of the economical relations fashioned within the strategy of formation, distribution and utilization of funds, as cash sources is extensively unfold. For instance, in “the overall principle 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 based on the distribution and utilization”. This definition is given comparatively to the circumstances of Capitalism, when cash-commodity relations achieve common character;
2) “Funds signify the formation of centralized advert decentralized cash sources, economical relations comparatively with the distribution and utilization, which serve for achievement of the state features and obligations and likewise provision of the circumstances of the widened additional manufacturing”. This definition is introduced with out displaying the atmosphere of its motion. We share partly such rationalization of funds and suppose expedient to make some specification.
First, funds overcome the bounds of distribution and redistribution service of the nationwide revenue, although it’s a fundamental basis of funds. Additionally, formation and utilization of the depreciation fund which is the a part of monetary area, belongs to not the distribution and redistribution of the nationwide revenue (of newly fashioned worth throughout a yr), however to the distribution of already developed worth.
This newest first seems to be part of worth of foremost industrial funds, later it’s moved to the associated fee worth 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 form within the consistence of the prepared merchandise price worth.
Second, foremost objective of funds is way wider then “achievement of the state features and obligations and provision of circumstances for the widened additional manufacturing”. Funds exist on the state stage and likewise on the manufactures and branches’ stage too, and in such circumstances, when probably the most a part of the manufactures aren’t state.
V. M. Rodionova has a unique place about this topic: “actual formation of the monetary sources begins on the stage of distribution, when the worth is realized and concrete economical types of the realized worth are separated from the consistence of the revenue”. V. M. Rodionova makes an accent of funds, as distributing relations, when D. S. Moliakov underlines industrial basis of funds. Although each of them give 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 types within the strategy of distribution and redistribution of the partial worth of the nationwide wealth and complete social product, is said 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 signify economical (money) relations, with the assistance of which, in the way in which of deliberate distribution of the incomes and financial savings the funds of cash sources of the state and socialistic manufactures are fashioned for guaranteeing the expansion of the manufacturing, rising the fabric and cultural stage of the individuals and for satisfying different basic society requests”.
“The system of creation and utilization of essential funds of money sources for guarantying socialistic widened additional manufacturing signify precisely the funds of the socialistic society. And the totality of economical relations arisen between state, manufactures and organizations, branches, areas and separate citizen based on 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 phenomenon.
3) Distribution of funds as social product and the worth of nationwide revenue, definition of the distributions deliberate character, foremost objectives of the economic system and economical relations, for servicing of which it’s used.
If 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, with out an adjective “socialistic”, within the trendy economical literature. We could give such an elucidation: “funds signify money sources of manufacturing and utilization, additionally money relations appeared within the strategy of distributing values of fashioned economical product and nationwide wealth for 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 normal 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 could be very precise, comparatively to the method of privatization and the transition to privateness and is periodically utilized in observe in numerous nations, for instance, Nice Britain and France.
“Funds – are money sources, monetary sources, their creation and motion, distribution and redistribution, utilization, additionally economical relations, that are conditioned by intercalculations between the economical topics, 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 sources”.
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 individuals lead spending `the deficit money sources and incomes within the particular time frame. The monetary choices are characterised by the bills and incomes that are 1) separated in time, and a couple of) as a rule, it’s not possible to take them into consideration beforehand neither by those that get choices nor another individual” . “Monetary principle consists of numbers of the conceptions… which learns systematically the topics of distribution of the money sources comparatively to the time issue; it additionally considers quantitative fashions, with the assistance of which the estimation, placing into observe and realization of the choice variants of each monetary choices happen” .
These fundamental conceptions and quantitative fashions are used at each stage of getting monetary choices, however within the newest definition of funds, we meet with the next doctrine of the monetary basis: foremost operate of the funds is within the satisfaction of the individuals’s requests; the topics of economical actions of any form (companies, additionally state organs of each stage) are directed in the direction of fulfilling this fundamental operate.
For the objectives of our monograph, you will need to evaluate well-known definitions about funds, credit score and funding, to determine how and the way a lot it’s attainable to combine the funds, investments and credit score into the one complete half.
Some researcher 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 group proves, that a cheap class of credit score exists parallel to the economical class of funds, by which it underlines impossibility of the credit score’s existence within the consistence of funds.
N. Ok. Kuchukova underlined the independence of the class of credit score and notes that it’s only its “attribute function the turned motion of the worth, which isn’t associated with transmission of the mortgage alternatives along with the homeowners’ rights”.
N. D. Barkovski replies that 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 seen 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 movement and credit score.
Let’s talk about probably the most unfold definitions of credit score. within the trendy publications credit score seemed to be “luckier”, then 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, often, by paying %. Credit score represents a type of motion of the mortgage capital and expresses economical relations between the creditor and borrower”.
That is the normal definition of credit score. Within the earlier dictionary of the economic system we learn: “credit score is the system of economical relations, which is fashioned whereas the transmission of money and materials means into the temporal utilization, as a rule underneath the circumstances of returning and paying %”.
Within the guide of the political economic system revealed underneath discount of V. A. Medvedev the next definition is given: “credit score, as a cheap class, expresses the created relations between the society, labour collective and employees throughout formation and utilization of the mortgage funds, underneath the phrases of paying current and returning, throughout transmission of sources for the temporal utilization and accumulation”.
Credit score is mentioned within the following means within the earlier education-methodological manuals of 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 price range, unions, manufactures, organizations and inhabitants. Credit score has an 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 with out this situation”.
We meet with the next definition if “the course of 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 totally 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 share price by the borrower”.
Credit score is giving the temporally free cash sources or commodity as a debt for the outlined phrases by the worth of fastened proportion. Thus, a credit score is the mortgage within the type of cash or commodity. Within the strategy of this mortgage’s motion, a particular relations are fashioned between a creditor (the mortgage is given by a juridical of bodily individual, who offers sure money as a debt) and the debtor.
Combining each definition named above, we come to an concept, that credit score is giving cash capital of commodity as a debt, for sure phrases and materials provision underneath the worth of agency proportion price. It expresses particular economical relations between the individuals of the method of capital formation. Necessity of the credit score relations is conditioned, from one facet, by gathering strong amount of quickly free cash sources, and from the second facet, existence of requests of them.
Although, on the similar time we should distinguish two resembling ideas: mortgage and credit score. Mortgage is characterised by:
o Right here, the dialogue could contact upon transmission of cash and likewise issues kind one facet (loaner) to a different (borrower): a)underneath the proudly owning of the borrower and, on the similar time, b) underneath the circumstances of returning similar quantity or similar amount and high quality of the issues;
o The loaning of cash could bear no curiosity;
o Any individual could participate in it.
With the distinction with mortgage, credit score, which is one way or the other a personal event of the mortgage, represents:
o One facet (loaner) offers to the second (borrower) solely cash, and _ for temporal utilization;
o It could not bear no curiosity (if the project would not foresee one thing);
o In it creditor isn’t any individual, however a credit score group (on the first place, banks).
So, a credit score is the financial institution credit score. To our thoughts, it’s not right to make use of “credit score” and “mortgage” because the synonyms.
Banking crediting is the union of relations between financial institution (as a creditor) and its borrower. These relations contact upon:
a) Giving a sure amount of cash to the borrower for particular function (although, we meet with the so-called free credit, goals and objects of crediting aren’t appointed within the project);
b) Its opportune returning;
c) Getting proportion price from the borrower for utilizing the sources underneath his/her disposal.
The important basis of the credit score essence and its necessary factor is existence of belief between the 2 sides (in Latin “credo”, from which comes the phrase “credit score”, means “belief”).
From the place of circulation of cash types (within the abstraction, historic strategy of formation economical relations and social price range and banking methods expressed by them) evaluating totally 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 types, funds signify the method of formation and utilization of the funds of money means. Fairly often such actions are fulfilled with out returning, however typically, it’s attainable to present loans from the price range for the funding tasks of different wants. Additionally, when a manufacture or firms use their money funds and we imply the funds of business topic, such utilization could also be realized as contained in the manufacture or company (there isn’t any topic about returning or not returning of the utilization), so free of charge underneath circumstances of returning. This newest is named industrial kind due to transmitting the sources to others, however even on this event, it’s the factor of monetary system of the manufacture and company.
From the purpose of money means motion, foremost 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 would not happen (even within the distinctive events), based on the motion kind, credit score turns into a personal event of funds, as from the online monetary funds (consequently from the state price range) the loans which bear no pursuits could also be used. If gating credit score worth takes place, by the looks kind, credit score is mentioned to be monetary modification.
From the historic standpoint, funds (particularly within the type of the state price range) and credit score (starting with usury, later industrial and banking) have been growing in another way for contemplating credit score to be the a part of funds. Although, from the genetic-historical standpoint, earlier loaners, earlier than giving mortgage, wanted gathering the everlasting capital not returning, that’s the web monetary basis. The banks analogously wanted focus of the necessary personal capital for influxing the shoppers’ means and for getting greater proportion price underneath the circumstances of returning. Herewith, precisely on the monetary foundation, within the type 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 kind the genetic-historical standpoint, credit score seems to be fashioned from funds and signify their modification.
From the important place of expressing economical relations of funds and credit score, we meet with cardinal distinctions between these two classes. Which largely expressed by the excellence of the motion types however they’re returnable or not. Funds specific relations within the features 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 proportion given for mortgage, whereas based on the mortgage itself, a solely a temporal distribution of cash sources takes place.
Herewith, there’s a variety of frequent between the funds and credit score as from the important standpoint, so based on the type of motion. On the similar time, there’s a vital distinction between funds and credit score as within the essence, so within the kind too. In accordance with this, there have to be a type of usually 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 frequent to the researched economical 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 essence and type of economical class of extra basic character, these of funds and credit score classes. Although within the in economical texts and observe, it is extremely uncomfortable to make use of a termini, which consists of three phrases. Additionally, “unloading” with an info hardens drastically its influxing into the circulation even within the circumstances of its strict substantiation and thoroughness.
Within the discussing context we take into account:
1) huge and slim understanding of economical class of the funds;
2) discussing funds in slim understanding underneath basic conventional which means;
3) discussing funds, as funding of the money means, in huge understanding, which considerations funds – in 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 way in which of financing and crediting.
We now have established a brand new termini – “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 which means of funding money sources, its purposeful structuring. On this course of we take into account on the similar time monetary, credit score and investments’ economical classes.
Let’s sum up center outcomes of discussing new idea – “finance-investment sphere” and talk about its funding consisting elements.
The idea “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 commercial components within the sphere of actual industrial actions throughout realization of capital tasks. From one look, this termini in its idea is an identical to the “investments”, consequently it’s attainable 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 additionally it offers a chance of termini formation. Extra concretely: “funding course of”, “funding area”, “finance-investment sphere” – all these termini are far more acceptable.
Altering native economical termini with international ones is purposeful, if it actually issues (by preserving 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 straightforward to clarify personal and slim concrete processes and components get their very own termini. The “motion” of those termini is accepted 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 placement of funds into the primary 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 commercial choices, which assure foremost instructions of the capital investments, the actions of their focus within the determinant suburbs, on which the reaching of deliberate charges of improvement of the society manufacturing is depended, balancing and effectiveness, getting an increasing number of manufacturing and revenue of the nationwide revenue for each misplaced Ruble”. For immediately, in probably the most precise definitions, the capital investments are bounded solely by monetary means, when not solely monetary, but additionally the funding of pure, material-technical and informational sources takes place. Labour sources take an precise place within the funding course of. They themselves fulfill this or that funding course of.
A constructive facet of the mentioned definitions is that they join funding coverage and capital placements (investments):
– economical improvement based on the important thing instructions to the focus;
– offering excessive charges of economical development;
– elevating a cheap effectiveness, which is expressed:
a) by rising the throw off of the manufacturing and nationwide revenue for each misplaced Ruble;
b) by fulfilling the department construction of the investments;
c) by enhancing 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 blended 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 development, to which the concept-advanced capital is corresponding. the advancing could also be realized within the cash, natural-material and informational types.
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 employees labour productiveness (in the way in which of rising their qualification and growing their talents); on the bills of enhancing the employees’ schooling, well being and elevating the mobility of the working forces”. It is extremely helpful to make use of the talked about termini, although it wants one correction: the human capital investments don’t concern solely employees, but additionally the servants, representatives of each type of labour.
“Funding commodity, capital items – a capital.”
Within the official manuals of political economic system of the reformation time the capital investments are mentioned as “bills for creating new foremost funds and widening, reconstruction and renewing the lively ones”. On this definition the investments (capital placements) throughout separation of the types (varieties) of additional manufacturing of the primary funds are bounded solely by foremost funds (with out will increase of the circulation funds and insurance coverage reserves):
a) creating new ones;
Additionally, the idea of the commercial gathering seems, on the bills of widening of fundamental, circulation funds and likewise insurance coverage reserves takes place”.
You may meet beneath the definitions of investments from “the course of economic system”: the investments are referred to as “placements of fund into the fundamental capital (fundamental technique of manufacturing), reserves, additionally different economical objects and processes, which request long-termed influxing of fabric and money means. “In accordance with the division of capital into bodily and cash types, the investments too have to be divided into materials and money investments”.
They apportion funding commodity, to which belong industrial and nonindustrial constructing objects, automobiles purposed for altering or widened technical park and the furnishings, growing reserves and others.
“They name the overall investments of manufacturing an funding product, which is directed in the direction of preserving and growing the fundamental capital (fundamental means) and reserve. Complete investments include two elements. One in all them is named the depreciation; it represents necessary funding sources 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 overall investments is represented by web investments – capital investments for the aim of accelerating fundamental means”. Depreciation just isn’t a compensation useful resource of sporting the fundamental funds out, however it’s the purposeful monetary supply of such sources.
Human capital funding is “a particular type of investments, 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 influxing the will increase of actual capital, that’s growing materials values of the commercial means”. We will 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 info, schooling of he employees and others. Such service as group of the excitable video games, additionally the service of redistribution social wealth from one personal individual to a different (besides charity).
“Monetary investments signify placement of funds into the shares, obligations, promissory notes, different securities and devices. Such investments, in fact, don’t give will increase of the actual materials capital, however they assist getting revenue, consequently on the bills of adjusting the course of the securities within the time of hypothesis, or distinguishing the course in other places of promote and buying”. We share wholly such definition, therefore it follows that monetary investments (if it’s not adopted by actual investments because of this) don’t enhance actual materials wealth and actual nonmaterial wealth. In accordance with this context, the expression beneath is essential: “we should distinguish monetary investments, which signify placement of the funds within the methods of promoting and buying the securities for the aim of getting revenue and monetary investments, which turn into 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 will name the investments which overcome the phrases of some months, long-termed ones, which could be very uncertain and we do not agree with it. An extended-termed character of the fund placement is a big function of the investments (short-term would 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 then 6 months – fast compensative;
– from 6 months as much as the yr and a half – center termed compensative;
– extra then the yr and a half – lengthy termed compensative.
We stopped on the definition of the investments within the capital work “economical course” for the particular function, as, in it the creator tried to debate the idea of investments systemically and fairly utterly, herewith the e-book is revealed simply now.
We’ll return to the dialogue the definition economical class of “investments” in numerous publications within the following chapter. The definitions given listed here 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 in accordance the definition of the talked about economical class within the revealed works, besides the made notions and specs?
There may be fairly deeply, concretely and totally outlined the idea of “investments”, totally different definitions within the economical literature; however largely in each works in regards to the investments mentioned by us till now, there’s 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’s 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 it’s only – definition”.
However the classes are a lot wider; it’s “a key, probably the most basic idea of each science”. Economical classes theoretically signify actual, objectively existed productive relations. A class is the defining of events of existed characters, connections, relations of the target world. Usually, any instructional course of is fulfilled by the classes, which give alternatives for dividing the processes and events semantically, for expressing the definitions of a topic and notice their particular peculiarities and economical relations of a cloth world.
Our objective is precisely to substantiate investments – as a cheap class and likewise, as a monetary class within the slim understanding.