Specialty 050509 “Finance”

Questions for the “Finance” section

The concept of finance, its necessity

Concept "finance" covers a wide area of ​​economic relations related with distribution social product in monetary form.

The external manifestation of finance in economic life occurs in the form of the movement of funds among different participants in social production. On the surface of the phenomena, this movement represents the transfer of amounts of money from one owner to another in the form of non-cash or cash payments. This feature was manifested in the origin of the term “finance”, from the Latin “finis” - end, finish, end of payment, settlement between subjects of economic relations (originally in Ancient Rome - between the population and the state). Later, the term was transformed into “finansia”, which was used in a broad sense as a monetary payment, and then as a set of income and expenses of the state and any economic units and their complexes.

Hence, obviously, finance includes that range of operations that are carried out in the form of cash payments.

As a rule, monetary payments are made among themselves by various entities participating in social production. At the same time, money serves the entire process of activity of market subjects both in the areas material production And commodity circulation, and in non-production sphere activities.

The concept of “finance” is often equated with money. This is due to the fact that at the level of public perception, money and finance are difficult to distinguish, although in essence they are different economic phenomena.

The functioning of money as an economic instrument differs from finance, both in essence and in purpose. Feature of money is that they represent a universal equivalent with the help of which the labor costs of associated commodity producers are measured. The main purpose of money expressed in their functions: measures of value, means of circulation, means of payment, means of accumulation and savings, world money.

At the same time, the presence of money in the economic system is a prerequisite for the functioning of finance. In other words, finance cannot exist without money. However, this does not mean that the reason for the emergence of finance is money.

Unlike money, finance always an intangible thing.

Feature of finance is that it is, first of all, an instrument for the distribution and redistribution of the gross domestic product.

The main purpose of finance is to provide for the various needs of subjects of society by creating cash income and funds. This is evidenced by all financial transactions performed.

The reason giving rise to the emergence of finance, is the need of the state and various entities for resources to support their activities.

For example: Subjects of non-production activities , which includes the entire social sphere: education, healthcare, culture, art, as well as areas of management, defense, etc., cannot function if they do not have the necessary amount of funds to meet their needs related to the fulfillment of public purposes.

This need for resources cannot be satisfied without finance either in the economic sphere, or in the social sphere, or in the sphere of government activities: management and defense. This is due to the fact that only with the help of finance is the distribution of value among the subjects of the reproduction process possible, that is, only through the financial distribution of the value of the gross national product does each participant in social reproduction receive its share in the created value and the movement of funds receives a target designation.

In a market economy, the range of transactions of individuals mediated by the movement of funds is expanding. In particular, citizens, engaged in various types of entrepreneurial activities without forming a legal entity, having a personal sector, household, receive income that serves as a source of covering their various needs, including those of a socially significant nature. Citizens pay various types of taxes and fees to the state budget.

Hence, the range of transactions under consideration is accompanied by the movement of funds from one owner to another, and is carried out in the form of cash payments. Therefore, these operations are to financial transactions, and the process of cash flow itself is called finances.

Based on the above, we can formulate a definition: Finance is a set of special economic relations that arise in the process of distribution and redistribution of the value of a social product, as a result of which monetary income, savings and funds are generated and used by participants in reproduction to satisfy their various needs.”

Specific signs of finance

monetary character;

distributive nature;

always expresses the one-way movement of the monetary form of value;

mandatory formation and use of financial resources.

A) On the surface of social processes, finance manifests itself through the movement of funds. Financial transactions are necessarily accompanied, firstly, by the transfer of funds from one owner to another, and secondly, by the establishment of their target designation. Consequently, finance differs from other economic categories in that it is a derivative of the monetary form of value . When performing financial transactions, their monetary shell is visible, behind which the movement of value is hidden. That is, the economic basis for the functioning of finance is the movement of value in its monetary form. This circumstance allowshighlight their monetary nature as an important specific feature of finance as an economic category.

B) Financial transactions manifest themselves not only as the movement of the monetary form of value, but also contain at their core its distribution. For example, the financial transaction “payments to the budget” is carried out by distributing the created value on the basis of isolating from it that part that is transferred to the budget in the form of various types of taxes. In reality, there is a cash payment from the subject to the state.

Consequently, in the system of monetary relations, finance is limited only to the distribution process. Therefore, the next specific feature of finance as an economic category is its distributive nature.

C) The distribution processes carried out by finance cover not only the value of the gross domestic product, but also extend to the entire gross national product, as well as part of the national wealth.

A feature of financial transactions, and therefore finance, is the fact that the movement of funds occurs unilaterally, that is Finance always expresses the one-way movement of the monetary form of value, which also characterizes its specific feature.

D) Not only finance, but also wages, price, credit, etc. take part in the distribution of the value of the social product. All these economic categories have different operating principles, each of them has its own characteristics, its own social purpose. On the basis of financial relations, a part of the value is isolated in the form of savings and specific forms of net income are isolated as part of gross income. These processes of distribution of the value of the gross domestic product are accompanied by the formation of special types of resources. Their peculiarity is that they are formed at the disposal of various entities or the state as a result of the targeted separation of funds and are intended for further use in the interests of meeting social needs. Consequently, when distributing the value of the gross domestic product with the help of finance, there is necessarily a movement of funds that take special forms of resources - income, deductions, receipts, savings, which together can be called financial resources. Hence, the next specific feature of finance as an economic category is the mandatory formation and use of financial resources.

Finance functions

Distributive function implements the social purpose of finance - providing each participant in social reproduction (both business entities and the state) with the necessary financial resources, as well as determining the directions of cash flows for their intended purpose.

Control function. The implementation of the control function of finance is reflected in the state of financial discipline in the economy.

Financial discipline- this is mandatory for all legal and individuals engaged in business activities, as well as officials, the procedure for conducting financial management, compliance with established norms and rules, and fulfillment of financial obligations.

Thus, the ability to “signal” about the progress of the distribution process is manifested through the control function of finance. The so-called “financial signals” show how the proportions develop in the distribution of funds, how timely financial resources are available to the state and other participants in the reproduction process, whether they are used economically, etc. The main requirement of financial discipline- strict compliance with norms, standards, limits, control figures and other financial parameters defined by law or enshrined in state regulations. In a broad sense, financial discipline includes fiscal discipline, payment discipline and accounting discipline. Financial discipline is an important means of promoting economic development, strengthening commercial accounting and a necessary condition for the normal functioning of finance. It is determined both by the general principles of financial organization and by the specific conditions for the functioning of finance in various structural units of social reproduction.

The term “finance” comes from the Latin finis – end, end, finish. In the Ancient World and the Middle Ages, in monetary relations arising between the state and the population, the word “finis” meant final settlement, completion of monetary payment. Persons who paid contributions to various government bodies received a document - fine. From the name of this document came the Latin term “financia”, which meant cash payment. The long process of development of commodity-money relations has changed the content of the phenomenon of finance.

Today finance- this is an objective economic phenomenon, which is a system of formation, distribution, redistribution and use of monetary funds of subjects of society. On the one hand, this phenomenon acts as an economic category, and on the other, as a subjective cost instrument of activity.

As economic category Finance expresses economic relations regarding the production, distribution and use of gross domestic product and national income. These relationships are manifested in the creation and use of trust funds of funds by various economic entities (state, business entities, interstate organizations, individuals, etc.).

Finance how subjective cost instrument functioning of economic entities form a specific decision-making mechanism regarding the processes of formation and use of monetary funds.

Finance appears in monetary form, but not all monetary relations are financial. Monetary relations turn into financial ones when, as a result of the production of goods and the provision of services during their sale, funds of funds are created.

Cash funds created at the level of the state and local governments are called centralized funds, and monetary funds created at the level of economic entities, households - decentralized.

The object of finance is financial resources, representing a collection of funds of funds at the disposal of business entities, the state, and households. The sources of financial resources are:

– at the level of business entities – profit, depreciation, income from the sale of securities, bank loans, interest, dividends on securities issued by other issuers;

- at the population level - wages, bonuses, wage supplements, social payments made by the employer, travel expenses, income from business activities, profit sharing, transactions with personal property, credit and financial transactions; social transfers, including pensions, benefits, scholarships; consumer credit;

- at the level of the state, local governments - income from state and municipal enterprises, income from the privatization of state and municipal property, income from foreign economic activity, tax income, state and municipal credit, issue of money and income from the issue of securities.

2. FUNCTIONS OF FINANCE AS A DISPLAY OF ITS ESSENCE

1. Distributive function finance is that:

– through the distribution and redistribution of newly created value, national needs are met, sources of financing the public sector of the economy are formed, and a balance of budgets and extra-budgetary funds is achieved within the framework of the unified budget system of the Russian Federation;

– the newly created value is subject to distribution in order to fulfill the monetary obligations of enterprises to the budget, banks, and counterparties. Its result is the formation and use of centralized funds of funds, the maintenance of the non-productive sphere of the economy.

The main objects of implementation of the distribution function of finance are mandatory payments to the budget and extra-budgetary funds, as well as sources of financing the budget deficit. The process of redistribution of income between different levels of budgets plays a special role.

2. Control function finance consists in implementing ruble control over real money turnover, of which the state is a participant, and the formation of centralized funds of funds. Ruble control has two forms:

– control over changes in financial indicators, the status of payments and settlements;

– control over the implementation of the financing strategy.

In the first case, a system of sanctions and rewards is applied, using coercive or incentive measures. In the second case, we are talking about the implementation of a long-term financial policy, in which the main attention is paid to anticipating changes and adjusting the order and conditions of financing to them in advance. Constant changes and updates in the financial system require an adequate response to this from all branches of government.

The control function of finance always has a specific form of manifestation. It can be directed to a budget of a certain level, an extra-budgetary fund, an enterprise or institution, etc.

The control function of state and municipal finances is implemented in the following main areas:

1) control over the correct and timely transfer of funds to centralized funds;

2) control over compliance with the specified parameters of centralized funds of funds, taking into account the needs of industrial and social development;

3) control over the targeted and effective use of financial resources.

Many modern economists highlight other functions of finance. They are subjective in nature and serve as management tools.

Regulatory function is closely related to state intervention through finance in the reproduction process.

Stimulating function state and municipal finance is to ensure the development of various spheres of public life through a system of benefits and economic programs.

Fiscal function of finance is associated with supporting unprofitable but necessary sectors of the economy. It is carried out using many methods and techniques (investing, taxation, limiting, etc.).

3. ROLE OF FINANCE IN SOCIO-ECONOMIC DEVELOPMENT OF SOCIETY

The role and importance of finance changed at different stages of the development of society. In market conditions enterprises are endowed with greater independence in the distribution of sales proceeds and the use of financial resources. During primary distribution, with the help of finance, funds are created to compensate for the means of production consumed in the production process. In this case, enterprises can choose one of several methods for calculating depreciation, a form of non-cash payments when paying for raw materials, calculate the optimal stock of working capital, and choose a strategy for financing core activities.

After deducting the expense reimbursement fund from the cash proceeds and paying certain tax payments at enterprises, a wage fund is created, and the remainder of the proceeds represents the net income (profit) of the enterprise. After paying taxes levied on the budget, enterprises can distribute the remaining net profit at their discretion. With the help of finance, enterprises create trust funds of funds used for social and economic development.

During secondary distribution or redistribution, the state budget and extra-budgetary funds are formed. With the help of these funds, financial regulation and stimulation of production are carried out, national programs are financed, the maintenance of the non-production sphere, defense and management are achieved, and the concentration of financial resources is achieved in the main directions of scientific and technological progress. Serving the process of distribution of national income, finance acts as an important economic lever for improving the proportions between the accumulation fund and the consumption fund, as well as within them. With the help of finance, financial resources are redistributed between the territories of the country, economic sectors, and divisions of social production. By redistributing between sectors of production, finance contributes to the accelerated development of priority sectors, which, in turn, ensure the development of scientific and technological progress. The redistribution of funds between territories helps to equalize their economic and social development.

Without the participation of finance, social development of society is impossible, since funds to finance all social activities are obtained through the distribution of national income through the budget and social extra-budgetary funds. The entire non-production sphere is financed from the budget, and funds are allocated for social security.

In modern conditions, the role of finance in the socio-economic development of society is manifested in the following main areas:

– intensification of the policy of accumulation of domestic capital;

– use of budget and tax policies to develop the economy and strengthen it;

– state support for industrial investments and financing of investment programs that ensure the preservation and development of the country’s scientific and technical potential;

– use of financial market opportunities for production investment purposes;

– strengthening social orientation state budget;

– achieving social justice in relation to various categories, layers and social groups of citizens.

4. GENERAL CHARACTERISTICS OF FINANCIAL RESOURCES

Financial resources are the most important source of expanded reproduction and socio-economic development of society. Increasing the volume of financial resources– one of the most important tasks of the state’s financial policy. A decrease in the volume of financial resources has a negative impact on the development of society, leads to a reduction in investment, a decrease in consumption funds, and creates imbalances in the distribution of the social product and national income. The influence of financial resources on the economic development of society is not one-sided. In turn, the composition and volume of financial resources depend on the level of economic development of the state and on the efficiency of production. Economic growth serves as the basis for increasing the volume of financial resources, and the amount of financial resources allocated to the expansion and development of production helps to increase its efficiency.

It is necessary to distinguish between centralized financial resources of the state and decentralized financial resources of enterprises. Decentralized financial resources are formed in the form of various national funds, primarily the budget and extra-budgetary funds, the funds of which are used to implement the most important functions of the state, such as the development of the national economy, financing of socio-cultural events, meeting defense needs and maintaining the political superstructure of society. The sources of centralized financial resources are national income and partly national wealth in the case of its involvement in economic circulation and effective use, borrowed and raised funds.

The main sources of financial resources of enterprises are profit and depreciation, as well as borrowed and raised funds. The volume of decentralized financial resources depends on the same factors as the volume of centralized ones, but their value is also influenced by the degree of centralization. The emergence and development of the financial market gives business entities new opportunities to expand the composition of financial resources and increase their volume by issuing securities, using borrowed funds from various credit organizations and commercial loans, placing temporarily free funds on deposits with commercial banks, etc.

The formation and use of financial resources can be carried out not only in fund, but also in non-fund form. Centralized financial resources are formed and used primarily in the form of cash funds, which include, for example, the budget, social insurance fund, road fund, fund for the reproduction of the mineral resource base and other extra-budgetary and special funds consolidated in the budget. At the enterprise level, financial resources can be created and used in both stock and non-stock form.

The volumes of financial resources of the state and enterprises are directly dependent, since the source of the formation of state budgetary and extra-budgetary funds is the gross domestic product created by economic entities.

5. FINANCIAL RESOURCES OF THE STATE AND ENTERPRISES, THEIR COMPOSITION AND STRUCTURE

State financial resources are part of the financial resources of the national economy, which include financial resources of the production and non-production spheres, as well as the population. The main sources of formation of the state’s financial resources are national income, borrowed and raised funds, income from the state’s foreign economic activities, and partly national wealth. Most of the state's financial resources are concentrated in the centralized fund of state funds - the state budget, which makes it possible to finance the performance of the state's functions.

IN recent years The state's financial resources were largely replenished through government borrowing on the domestic and foreign financial markets. This method of increasing the volume of financial resources can be considered effective, provided that there are possibilities for timely repayment of public debt.

Financial resources are the material basis for the functioning of the state, and most of them are created during the distribution of national income. Financial resources are mobilized in state centralized funds of funds by tax and non-tax methods, with the overwhelming majority being accumulated by the state through taxes.

Included financial resources of enterprises includes own, borrowed and attracted funds. The own financial resources of enterprises include profit, depreciation charges, authorized and additional capital, as well as the so-called sustainable liabilities of the enterprise, including sources of financing that are constantly in circulation of the enterprise, for example, reserves formed in accordance with the constituent documents of the enterprise or legislation. Borrowed funds include loans from commercial banks and other credit organizations, and other loans. Attracted financial resources are funds raised by issuing shares, budgetary allocations and funds from extra-budgetary funds, as well as funds from other enterprises and organizations raised for equity participation and for other purposes.

The structure of financial resources of enterprises varies depending on the organizational and legal form of the enterprise, its industry and other factors.

Despite the differences in the composition and structure of financial resources of individual enterprises, in their total volume for production enterprises, the largest share is occupied by their own funds.

The structure of financial resources changed along with the development of the economy. In the conditions of a command-administrative economy, a share of the financial resources of domestic enterprises was occupied by funds from the state budget and loans from the State Bank of the USSR; enterprises were not able to use such sources of financial resources as issuing securities, attracting foreign investment, and loans from commercial banks. The development of the financial market gives enterprises new opportunities to expand the composition of financial resources and increase their volume.

6. FINANCIAL MARKET, ITS STRUCTURE AND ROLE

Financial market is a market in which the redistribution of temporarily free funds is carried out between various economic entities through transactions with financial assets.

Different authors include different components in the composition of the financial market. The most frequently mentioned sectors of the financial market are the securities market and the credit market. Quite often, the financial market includes the following markets: foreign exchange, gold, and insurance.

When analyzing trends in the development of the financial market, practitioners, as a rule, analyze such segments as the securities market, credit and foreign exchange markets.

When identifying financial market segments, we proceed from the fact that their common property is the redistribution of temporarily free funds, which makes it possible to combine these segments under common name"Financial market". At the same time, each of these segments has its own characteristics, which distinguishes them into separate components of the market.

Thus, in the securities market, transactions are made with such a specific product as securities, through their purchase and sale or other civil transactions. The issuer, through the issue of securities, attracts additional funds, and the investor, by purchasing these securities, expects to receive income or pursues other goals (for example, when purchasing ordinary shares, to acquire voting rights in the management of the company). In this case, the investor can sell these securities on the market.

Acts of purchase and sale are not carried out on the credit market, and, having concluded a loan agreement, neither the lender nor the borrower can sell it. Credit organizations attract temporarily available funds and then issue them on credit, thus redistributing them. Distinctive feature This market is the fact that redistribution in this case is carried out on the principles of lending, i.e. repayment, urgency and payment, and through intermediaries, mainly through banks. Business entities can lend to each other directly, bypassing banks, but in this case they must have economic ties with each other, and lending is carried out upon the supply of goods (commercial loan).

Transactions with foreign currency values ​​are carried out on the foreign exchange market. Currency values ​​include: foreign currency and securities denominated in foreign currency. This is the most liquid market. The object of the foreign exchange market is any financial requirements, expressed in foreign currency, and the subjects are financial and investment institutions. Foreign exchange market entities carry out the following types of operations: hedging (insurance of open currency positions), interest rate arbitrage, purchase and sale of currency through cash (spot) and forward (forward) transactions, as well as swaps (simultaneous implementation of purchase and sale transactions with different maturities execution).

The financial market and especially the securities market, or stock market, are not only a means of redistributing financial resources in the economy, but they together constitute a very important indicator of the state of the entire financial system and the economy as a whole.

7. FINANCIAL SYSTEM AND CHARACTERISTICS OF ITS LINKS

Financial system is a set of different spheres or links of financial relations, each of which is characterized by features in the formation and use of funds of funds, a different role in social reproduction.

The financial system of Russia includes the following links of financial relations: 1) national finances (state budget, extra-budgetary funds, state credit); 2) insurance funds; 3) finances of enterprises of various forms of ownership.

The above links are usually divided into centralized and decentralized spheres of financial relations.

National finances – This centralized funds monetary resources that are created through the distribution and redistribution of national income created in sectors of material production.

Insurance links financial system uses other forms and methods of formation and use of monetary funds, which are characterized by decentralization processes.

Enterprise finance are also represented by decentralized funds of funds of economic entities of various forms of ownership, generated from the cash income and savings of the enterprises themselves.

The financial system is a unified system since it is based on a single source of resources for all links. Uniting the basis of a unified financial system are enterprise finance.

Plays a major role in national finances state budget, which is a centralized monetary fund and ensures that the state performs its inherent functions. The main and main source of formation of the state budget is taxes from enterprises and the population.

In addition to the state budget, in any economy, off-budget funds, where the funds of the federal government and local authorities are concentrated to finance expenses not included in the budget. According to their economic content, extra-budgetary funds are divided into two groups - social and economic off-budget funds. The formation of extra-budgetary funds is carried out through mandatory target contributions.

An important element of national finance is government loan. State credit is a special form of monetary relations between the state, individual citizens, legal entities and individuals, as well as foreign states and international organizations regarding the formation and use of a loan fund.

National debt represents the entire amount of issued but not repaid government loans with interest accrued on them as of a certain date or for a certain period.

Insurance funds provide social protection to society, compensation for losses from natural disasters and accidents, and also contribute to their prevention.

A special place in the financial system is occupied by finance of enterprises and organizations, which are the basis of the country's unified financial system. They serve the process of creation and distribution of social product and national income. Their economic condition determines the degree to which centralized funds are provided with financial resources.

8. FINANCIAL POLICY: TYPES AND OBJECTIVES

The set of government measures to use financial relations for the state to perform its functions represents financial policy.

1) development of a general concept of financial policy, determination of its main directions, goals, main tasks;

2) creation of an adequate financial mechanism;

3) management of the financial activities of the state and other economic entities.

Basis of financial policy make up strategic directions. Objectives of financial policy directed:

1) to provide conditions for the formation of the maximum possible financial resources;

2) establishing a rational, from the state’s point of view, distribution and use of financial resources;

3) organization of regulation and stimulation of economic and social processes financial methods;

4) development of a financial mechanism and its development in accordance with the changing goals and objectives of the strategy;

5) creation of an effective and business-like financial management system.

Home goal of state financial policy– the most complete mobilization of financial resources and increasing the efficiency of their use for the socio-economic development of society.

An important part of financial policy is the establishment financial mechanism.

The most important directions of state financial policy are: budgetary, tax, investment, social, customs policy.

Budget policy states must first of all be considered as a set of measures to implement the interaction of budgets at different levels. The main task in budget policy was and remains to strengthen public finances, reduce the budget deficit, and create favorable financial conditions for the development of sectors of the national economy.

Tax policy represents the activities of organs state power and local self-government for the forced withdrawal of part of the income received by economic entities and the population in order to form the revenue side of the relevant budgets.

Investment policy is a set of measures to create conditions for attracting domestic and foreign investment, primarily in the real sector of the economy. The main objective of this policy is to create conditions to make it profitable for investors to invest financial resources in the Russian economy.

Social financial policy is primarily associated with solving the problems of financial provision of the rights of Russian citizens established in the Constitution of the Russian Federation. Currently, social financial policy covers pension policy, immigration policy, financial assistance policy for certain social groups of the population, etc.

Customs policy is a symbiosis of tax and pricing policies, limiting or expanding access to the domestic market for goods and services and encouraging or restraining the export of goods and services from the country.

Financial policy of the enterprise represents the purposeful activities of financial managers to achieve business goals.

9. FINANCIAL MECHANISM AS AN INSTRUMENT FOR IMPLEMENTING FINANCIAL POLICY

An important component of financial policy is the establishment of a financial mechanism through which all state activities in the field of finance are carried out.

The financial mechanism is a system of forms, types and methods of organizing financial relations established by the state. Financial mechanism– this is the outer shell of finance, manifested in financial practice. The elements of the financial mechanism include financial resources, methods of their formation, a system of legislative norms and standards that are used in determining state income and expenses, organizing the budget system, enterprise finance and the securities market.

The financial mechanism is the most dynamic part of financial policy. Its changes occur in connection with the solution of various tactical tasks, and therefore the financial mechanism is sensitive to all the features of the current situation in the economy and social sphere of the country. The same financial relationship can be organized by the state in different ways. Thus, the relationship that arises between the state and legal entities on budget formation, can be based on the collection of taxes or non-tax payments. The financial mechanism is divided into directive and regulating.

Directive financial mechanism, as a rule, it is developed for financial relations in which the state is directly involved. Its scope includes taxes, government credit, budget expenditures, budget financing, organization of the budget device and budget process, financial planning.

In this case, the state develops in detail the entire system of organizing financial relations, which is mandatory for all its participants. In some cases, the directive financial mechanism may extend to other types of financial relations in which the state is not directly involved.

Such relations are of great importance for the implementation of either the entire financial policy (corporate securities market), or one of the parties to these relations - an agent of the state (finance of state-owned enterprises).

Regulatory financial mechanism determines the basic rules of the game in a specific segment of finance that does not directly affect the interests of the state. This type of financial mechanism is typical for the organization of intra-economic financial relations in private enterprises. In this case, the state establishes a general procedure for the use of financial resources remaining at the enterprise after paying taxes and other obligatory payments, and the enterprise independently develops the forms, types of funds, and directions for their use.

Financial management involves targeted government activities related to practical use financial mechanism. This activity is carried out by special organizational structures. Management includes a number of functional elements: forecasting, planning, operational management, regulation and control. All these elements ensure the implementation of financial policy measures in the current activities of government bodies, legal entities and citizens.

One of the most relevant areas of modern economic theory and practice is finance and credit. In practical activities, monetary issues are resolved every day and everywhere, but in different ways: publicly and secretly, thoughtfully and by trial, but in any case through economic relations in the conditions of interaction of certain subjects of society.

Long time In the economic science of the socialist period of development of our country, finance and credit were considered exclusively from the aspect of the state.

There was no private finance or credit; only personal ownership of consumer goods was asserted within the framework of generally accepted norms of socialist society. The finances of enterprises were of a conditional nature.

In foreign economic literature, on the contrary, there was a focus on describing the movement of private monetary resources and technologies for generating income. In this case, economic and mathematical methods and institutional approaches were used, which, like ideological tools, did not always lead to the desired result. Characteristic in this regard is the refusal of Western practice to monetarism as a general direction and basis of socio-economic development. All this suggests that, firstly, there are still no clear answers to many financial and credit questions, and secondly, for the positive development of society, further study of the mechanism of finance and credit is necessary.

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The ultimate purpose of finance and credit is to ensure simple and expanded reproduction of life values ​​to meet the growing needs of members of society. This is a common goal to which all cash flows of economic entities are subject.

Thus, finance and credit are a characteristic phenomenon of a market economy, the management of which primarily involves the need to develop a methodology and technique for studying them.

Methodology and techniques for studying the discipline “Finance and Credit”

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The process of mastering finance and credit, like any science, consists of a methodology (general part) and a methodology (specific part) of study. The general mechanism of knowledge of finance is as follows.

The source material of the research is practice, used, on the one hand, as source material, and on the other, and this is its main purpose, as a criterion for knowing the truth, assessing the reliability of knowledge, and a means of testing theoretical positions. Finance and credit are considered as a unity of an economic category and a subjective cost instrument for the life of society. Studying financial and credit relations in isolation from the subjects and their interests is unlawful and practically untenable. This is the first most important methodological premise.

The second premise is the thesis that a person (individual) is a primary concept, and a group, society is a collection of individuals, secondary phenomena. Therefore, when analyzing facts, the method of ascending from the part to the general, from the concrete to the abstract is used, and when checking, on the contrary, from the abstract to the concrete, particular.

A prerequisite for any analysis is the objectivity of the research. It requires that thoughts, purely personal relationships, sympathies, and social preferences remain outside the scope of science. Otherwise, when approaching a phenomenon from the standpoint of one’s own interests, the entire process of knowledge from collecting and selecting facts to obtaining results will be one-sided, subjective, i.e. unscientific character.

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Study methods depend on the level of research.

The first level is work with empirical material, selection, grouping, generalization of statistical and factual data. Statistical, sociological, economic, economic-mathematical and other techniques are used here. Possible errors at this stage are under-coverage or over-research of data. A clear description of the object and subject of study will help to avoid them. For example, there are the concepts of “tax”, “fee”, “fee”, “duty”, “deductions”. According to this terminology, when talking about taxation, we must abstract from all expressions other than taxes. But in the United States, social security contributions are considered tax payments. Hence only clear initial terminology, unambiguous concepts - the first inalienable rule for establishing the framework of an object and conducting its scientific analysis.

The level ends with a generalization of statistical material for further study of theoretical principles.

The second level is the study of material through dialectics and systematic approach in the analysis of financial and credit relations.

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The place and role of the discipline “Finance and Credit” in the system of educational subjects

The place and role of the discipline “Finance and Credit” in the system of basic humanitarian disciplines can be traced in the aspect of the educational process of training bachelors and specialists (Fig. 1).

The first level is mastering the basic economic concepts of economic theory, general research methodology (philosophy), law and management. Here students acquire the necessary knowledge of methodology and study methods economic processes, the basic principles of macro- and microeconomics, the concept of the most important laws and categories of a market economy: production, distribution, consumption, goods, money, market, politics, law, management, etc. Of particular importance is learning the basics management activities people within organizations in general.

Rice. 1. Place and relationships of the discipline “Finance and Credit” in the system of basic humanities

The second level is a special study of general concepts obtained at the first level in the discipline “Finance and Credit”.

The third level is a complex of financial and credit disciplines, including financial management, taxation, insurance, investment, etc. They study individual practical issues of finance and credit for individuals, organizations and the state.

At the fourth level, knowledge and skills of financial and credit activities are used in the study of disciplines in specializations.

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Topic 1. The essence and functions of finance. Role in the system of economic relations.

Question 1. Finance as an economic category.

3. Essence, functions and role of finance

3.1. The essence of finance

The term “finance” comes from the Latin “finis” - end, ending, finish. In the Ancient World and the Middle Ages, in monetary relations between the state and the population, the word “finis” meant the final settlement, the completion of a monetary payment. Persons who paid fees to the judge, the king or various government bodies received a document called a "finis". From the name of this document came the Latin term “financia”, which meant cash payment.

In the 16th century In France, the term “finance” arose, meaning cash, income, payment. This term was used to define the totality of public income and expenditure and gradually transformed into the modern concept of “finance”.

The long process of development of commodity-money relations radically changed the content of finance. If earlier in these relations the main role was played by the monarch, the state as owners and rulers, then in the twentieth century. Citizens become the main owners of values ​​and enterprises, and the state, represented by government authorities, acts as an intermediary and consumer of redistributed benefits. All this gave the right to the American scientists Z. Bondi and R. Merton to rightly note that in the world of finance there are two main actors - households and firms that make certain decisions. 1

In conditions of limited life values 2 the continuation and development of the human race is impossible without such a social process as their redistribution from the able-bodied to the disabled. The greater the amount of value that can be redistributed.

Redistribution can be direct or indirect. The first is carried out within the framework of one form of ownership, when there are no economic concepts of “mine” and “yours”. The second occurs through the economic concepts of “mine”, “yours”, i.e. property institution. This is how parents transfer their property to children, relatives and other entities.

A kind of catalyst for distribution and redistribution relations is the dominance of commodity-money relations, the transformation of all values ​​into goods and the need for their value expression in various market commensurators (money, securities, etc.).

As a result, we observe the presence of the following phenomena:

• formation of independent economic entities and owners of values;
• widespread distribution and redistribution of life values;
• isolation and constant changes in the real and fictitious cost of life's goods.

Their interaction gives rise to a system of movement of life values ​​from one subject to another, which is the basis of finance. At the same time, money is not a direct source of additional life values, but acts as a cost shell for the formation and use of monetary resources of specific subjects of society, independent of people’s consciousness. The interaction of this shell, monetary resources and specific entities forms finance.

Thus, finance is an economic phenomenon, which is a system of formation, distribution, redistribution and use of monetary funds of subjects of society. On the one hand, this phenomenon acts as an economic category, and on the other, as a subjective cost instrument of activity.

As an economic category, finance expresses the relationship between economic entities regarding the formation and use of monetary funds. That is, finance is not only money, but the unity of three elements: at least two subjects, an object and the relationship itself. In the absence of any of them, there is no finance. The basic model of finance is the following diagram (Fig. 3.1.)

rice. 3.1. Model of the essence of finance

Subjects of financial relations in a market economy can be:

• individuals;
• family;
• organizations (legal entities);
• state;
• interstate legal entities;
• non-formal education.

The first four types form the internal system of financial objects of each country, the last three – the international sphere. Of course, real relationships are much broader and more varied. Along with legal subjects of finance, there are extra-legal, so-called informal subjects (organizing committees, clubs, lodges, “troikas”, “sevens”, etc.). They make financial decisions on the formation and use of funds from a position of strength, traditions, customs, and “gentleman’s” agreements. There are especially many such entities in the category of individuals. they form the unofficial (shadow) sphere of education and distribution of funds.

Object of finance are financial resources. They cover real and fictitious values ​​that have a value expression. This is, firstly, money (paper, electronic, etc.), which in itself does not contain value, but is capable of personifying real material, spiritual and social values; secondly, a variety of securities (shares, bonds, etc.), reflecting the tangible and intangible values ​​of individuals, legal entities and government agencies; thirdly, the various obligations of economic entities. In this case, the assessment (cost) of fictitious values ​​may be greater, less or equal to real existing values.

The set of relationships between subjects regarding changes in an object constitute a complex hierarchical system (Fig. 3.2.).

Rice. 3.2. System of financial relations

The first group of relationships covers connections between individuals. This includes various monetary relations regarding the formation and use of funds of individuals within the circle of relatives, acquaintances, and those taking part in the life of a particular person. This area of ​​finance mediates consumption, reproduction and human development, as well as the production of life values ​​at the primary level, sometimes including acts of purchase and sale of labor and other financial issues.

The relationship of an individual with his family, which makes up the second group, is organically connected with this sphere.

The third group includes the relationships of individuals with non-state production, financial, credit, commercial and other organizations regarding the formation and use of monetary resources. This is the main sphere of relations through which, on the one hand, the generation of income in the form of wages, dividends, interest, borrowed resources, etc. occurs, and, on the other, the investment of funds in the funds of non-governmental organizations. This point is extremely important for understanding the role and place of finances of individuals. It is he who radically changes the socio-economic significance of personal finance, turning it into a basic functional element and legal basis of a market economy. The initial economic base of enterprises in a market economy under conditions of private ownership can be exclusively individual financial capital, the personal wealth of citizens. There is no impersonal joint, collective property, there is only management of joint property. Any association is based on the participation of individual owners. Hence, all partnerships and joint stock companies are, ultimately, pieces of personal finance. Accordingly, when liquidating organizations, the individual interests of shareholders and shareholders are primarily satisfied.

The fourth group of relations reflects the flow of funds between citizens and state legal entities, in which the main place is occupied by the movement, on the one hand, of payments to the budget, and on the other hand, of various targeted cash payments from government organizations (salaries of budget employees, state pensions, social benefits etc.).

The fifth group of relations arises when there are several owners (shareholders, shareholders) of the organization and expresses the relationship between them regarding the formation of initial monetary funds and the distribution of final financial results. This is the initial and final sphere of finance of collective entrepreneurial activity.

The sixth group of relations is the monetary connections of citizens with economic entities (individuals, non-state legal entities, government agencies) of foreign countries, as well as interstate organizations and associations of countries in terms of investments, income, payments, sponsorship, etc.

The seventh group is the relations of non-governmental organizations with other non-governmental production, financial, credit, commercial and other organizations regarding the formation and use of monetary resources. Through this sphere of relations, on the one hand, the formation of dividends, interest, borrowed resources and other things occurs, and on the other, the sale of created goods and services. The last point is extremely important for understanding the role and place of finance in organizations. It is he who ensures market recognition and monetary metamorphosis of the newly created value of goods and subsequent satisfaction of the material interests of participants in production - owners in income, and employees in wages.

The eighth group of relations reflects the relations between non-governmental organizations and state legal entities, in which the main place is occupied by the movement, on the one hand, of payments to the budget, and on the other, of various targeted cash payments from state organizations.

The ninth group of relations are monetary connections of non-governmental organizations with economic entities (individuals, non-state legal entities, government agencies) of foreign countries, as well as interstate organizations and associations of countries in terms of the purchase and sale of labor, investments, income, payments, sponsorship, etc. .d.

The tenth group of relations covers relations between the state and foreign economic entities.

The set of these relations can be classified not only by subjects, but also by:

• functional role and significance in a market economy (consumer of life values ​​and producer-consumer);
• the size and nature of funds;
• degree of plannedness of relations.

The initial, main and final relations are between individuals. Their purpose is to ensure the fulfillment of human needs, their development and reproduction through the formation and use of monetary funds. All other relations have a subordinate, auxiliary meaning.

According to the degree of planning, financial relations can be planned, forecast (indicative) and chaotic. Much is determined by the interaction of forms of ownership.

According to their social form, relationships are divided into formal and informal. Formal relations include those that correspond to the generally recognized forms (law) of society. Informal relationships are unspoken, extra-legal relationships.

The object of the relationship is the value of internal gross product(GDP), total product, and sometimes national wealth. All this makes finance a powerful economic tool for the distribution and redistribution of the value of life values ​​between economic entities of society with market economy.

Finance as a subjective cost instrument for the functioning of economic entities forms a mechanism for making decisions regarding the formation and use of monetary funds.

3.2. Finance functions

The essence of finance, like any economic category, is manifested in its functions. Finance performs two objective functions: distribution and redistribution. The purpose of finance is to distribute and redistribute the value of life values ​​from one entity to another, from the possessing and producing citizens in favor of the poor and non-producing.

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Distribution function of finance – objective and basic. The subjects of distribution are individuals and legal entities - participants in public activities, at whose disposal funds for special purposes are formed. These are citizens, organizations, the state, international structures and international entities.

The initial stage of the emergence of financial relations is the primary distribution of the value of values ​​(initial capital) of citizens to consumer, insurance and investment funds.

At the second stage, production funds and assets necessary to create new value are formed.

At the third stage, the cost of the created values ​​is distributed to the fund for the replacement of consumed values ​​(fixed and working capital), the wage fund of employees and income (profit, interest, rent) by the investor.

The three named stages constitute the primary distribution of life values ​​between owners, organizations and direct participants in production. The further process of value movement reflects redistribution function . Its essence lies in the alienation of the value of some in favor of others, as a result of which the final monetary funds of all subjects of society are formed.

Thus, the redistribution of GDP occurs between various spheres, industries and regions of the country, forms of ownership, social groups and members of society. The financial distribution method covers different levels of management.

Both distribution and redistribution in reality mean the use of funds for some subjects and the formation of funds for others.

Regarding control function execution of decisions (completeness, timeliness, etc.), then it takes place within the exclusively subjective activity of people. Sometimes control is identified with an analysis of the quality (efficiency) of management, but this is a special area of ​​financial management, like accounting, reporting, etc. The importance of the control function of finance increases sharply in the conditions of the modern stage of transition to a market economy, when the interests of subjects are placed above all else.

The content of the control function is to ensure control, firstly, over the movement and formation of the value of life values ​​in society, mainly for the full accumulation of income, and secondly, over the course of expenditure and use of funds. financial control operates during the movement of money and capital through systems and forms of payments, credit, taxation, collateral, etc.

In addition to the distribution, redistribution and control functions in the economic literature, regulating, stimulating and other functions of finance are sometimes called. They are also subjective in nature and serve as management tools. Their purpose comes down to creating relatively better financial conditions for the functioning of some subjects of society compared to others.

3.3. Functional mechanism of finance

The functions of finance are implemented through a functional mechanism consisting of cash flows from the formation and use of various funds.

Money (value) fund represents a certain amount of money (value) for a specific purpose (labor fund, wage fund, depreciation fund, reserve fund, etc.) belonging to a specific economic entity (owner).

In a market economy, there are many value funds. Their totality is divided according to a number of characteristics, including: by the circulation process, by their role in production, by subjects of relationships, etc. The most significant classification is the division of funds by functional purpose: financial resources, financial results and financial forms of expression. Here it is necessary to highlight the following main groups of funds:

• initial, basic;
• consumer;
• insurance;
• investment;
• non-current and current (assets);
• financial;
• special purpose;
• other.

Under original funds means funds that flow to an individual regardless of any of his activities. They consist of values ​​transferred by inheritance, donated by domestic and foreign economic entities, and cash receipts from state and non-state structures. Their carriers are: real estate (land, enterprises, buildings, structures, etc.), movable property (furniture, equipment, vehicles, antiques, luxury items, etc.), cash, securities, as well as intangible assets (patents, licenses and other rights).

Consumer funds– products intended for individual and public consumption.

Insurance funds– funds allocated to compensate for socio-economic losses as a result of accidents, natural and other disasters in the life of people, organizations and the state.

Investment funds- This is the initial capital invested in organizing production. In the activities of organizations they are embodied in their own means.

Non-current funds (assets)– transformation is a form of investment funds reflected in the assets of economic entities with a service life of more than one year. Non-current assets can be for consumer purposes (housing, land and other assets) and for production purposes (buildings, land and other means of production).

Working capital (assets)– a transformed form of investment funds, reflected in the assets of economic entities with a service life of less than one year. Current assets can be for consumer (food, clothing and other valuables) and industrial purposes.

Financial funds cover funds that mediate the formation and implementation of new value, as well as the transfer of embodied value (depreciation fund, wage fund, etc.).

The final structural element of finance are special purpose funds. Among them, consumption and accumulation funds play a special role. The significance of the latter is highest in the context of entrepreneurial activity, when their formation becomes a kind of criterion for the effectiveness of the functioning of finances and all productive human activities.

In addition to the above-mentioned monetary funds, many other funds arise in the process of interaction between economic entities.

The mechanism of connections and interaction of the most important funds is shown schematically in Fig. 3.3.

Rice. 3.3. System of the most important financial funds

In Fig. 3.3. the general direction of the movement of financial resources from the original initial capital through the production sphere to special-purpose funds is clearly visible, part of which (accumulation and reserve funds), while maintaining the patterns of circulation, returns to the original level. Moreover, the faster the turnover of funds, the less initial capital is required.

The arrows in the diagram indicate the functioning processes (metamorphosis, transformation, distribution, formation, etc.) of monetary resources. They are based on cash flows that form the “circulatory system” of finance. By cash flow we mean the movement of value from one entity to another. In this case, the fund of the first is used (distributed, transformed, etc.); the second – is formed (formed). Accordingly, relative to the fund of an economic entity, flows can be positive (inflows) and negative (outflows). If funds are the statics of finance, expressing the relations of owners, then cash flows are their dynamics, transformation. Funds and flows always function in unity. Some cannot exist without the other.

Cash funds and flows are always in motion. Stops make them lifeless and unnecessary. Paper and metal money themselves are not consumed, and electronic money is completely absent.

The described functional mechanism of finance refers to the internal objective content of finance. It receives its real expression in finance as a subjective cost instrument of the life activity of subjects and consists of financial policy, financial law and financial management.

3.4. The role of finance in a market economy

To determine the role of finance, one should trace the impact on society of distribution and redistribution cash flows.

The role of finance in the life of subjects of a market economy is different. Much depends on traditions, customs, natural-historical and specific characteristics of consumption and production.

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The main meaning of finance is the distribution and redistribution of life values ​​between individuals. At the same time, in developed countries the following basic requirements are met:

• ensuring the minimum means for production participants necessary for the existence and reproduction of the labor force;
• providing every poor person with a minimum subsistence level;
• maintaining the material interest of owners in investment activities;
• maintaining a scientifically based optimal ratio between the incomes of 10% of the poor and 10% of the rich population.

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The foundations of the process of distribution of newly created value are laid in the production of life values. At the same time, monetary relations become forms of functioning of individual elements and necessary connections of reproduction.

Each reproduction cycle begins with financial resources and is repeated in the future only after the value created in production and realized in the exchange process is subject to distribution (and redistribution), as a result of which targeted monetary funds are formed - the basis for satisfying various needs.

Financial relations are associated with both real and formal cash flows. The absence of real money movement at the stages of direct creation and consumption of life's goods indicates that it takes on an internal, formal form.

Financial relations begin with the movement of the value of real monetary resources during the formation of conditions and factors of production. Next, value sheds the cash form of money and is embodied in other potential forms.

At the distribution stage, the product created by society is first divided into a share of consumption and accumulation, and then each of these parts is subject to further distribution. The remainder is distributed between the owner of the means of production and hired workers. As a result, the created value in society goes through the first stage of distribution.

The stages of exchange and consumption are possible only after the distribution stage. Each participant in the reproduction process divides his part of the income into a consumption fund and an accumulation fund.

At the second stage, the movement of value in monetary form is characterized by its alienation (transition from the hands of some owners to the hands of others) or the targeted separation of each part of the value (in the hands of one owner). Here there is a one-way (without counter equivalent) movement of the monetary form of value.

At the third stage of reproduction, the distributed value (in monetary form) is exchanged for commodity value (D-T), i.e. acts of purchase and sale are carried out.

In equivalent exchange there is no finance: exchange transactions are serviced by three categories: goods, money and price. However, an unequal exchange (a watch worth 1000 rubles for a box of matches worth 1 ruble) certainly hides a significant financial point, which consists in a conscious or unconscious redistribution of value between the counterparties of the transaction 3 .

Thus, finance mediates the entire reproduction process from the formation of conditions for the creation of values ​​to their consumption. However, they play the greatest role at the stage of distribution and redistribution, during which the value of the social product is distributed according to its intended purpose and business entities, each of which receives its share of the produced product.

The process of cost mediation of social reproduction is carried out using various economic categories, including money, price, depreciation, profit, wages and others. Let's look at the main ones.

Price serves as an economic instrument through which the value of a product receives monetary expression and becomes an object of distribution. The price predetermines the proportions of the future cost distribution, but cannot carry out distribution among the subjects of ownership, functional separation (allocation, isolation) various parts cost. An exchange must take place and a distribution of value must take place before all parts of value receive concrete embodiment in certain quantitative proportions. Thus, the process of forming various parts of value can be divided into two stages.

At the first stage, the advance cost is transferred and potential income (wages, profits) is created. At the second stage, the real allocation of the compensation fund (depreciation, working capital) and primary income is carried out. Here, along with price, depreciation, wages, and profit are involved.

Wages expresses the value relations that arise in the process of distributing newly created value as a result of the formation of individual incomes of workers, depending on the quantity and quality of the labor expended by them.

Therefore, the wage fund, like depreciation, as well as profit, represent different areas of finance.

Thus, the role of finance in a market economy is extremely large. The reproduction of values ​​and the entire life activity of people depend on the nature of their functioning.

Print version

Test tasks in the discipline “Finance”, number of questions - 85 and number of questions 65
Task 1
Question 1. Finance is:
1. economic category;
2. economic phenomenon;
3. subjective instrument of a market economy;
4. cash.
Question 2. Finance as a phenomenon is:
1. cash;
2. unity of object and subject;
3. unity of at least two subjects, an object and relationships;
4. unity of at least two subjects, an object, relations and the state.
Question 3. How does the economic category of finance express:
1. relations between the systematic formation and use of funds of monetary resources of economic entities;
2. relations regarding the formation and use of funds;
3. relations regarding the circulation of monetary resources;
4. relations regarding the functioning of loan capital.
Question 4. Finance as a subjective cost instrument is:
1. funds of economic entities;
2. plan of income and expenses of economic entities;
3. a conscious mechanism for the formation and use of monetary funds;
4. mechanism for making decisions regarding the formation and use of monetary funds.
Question 5. The main meaning of finance is:
1. in ensuring the reproduction of material goods;
2. in the redistribution of funds between legal entities;
3. in the redistribution of funds from those who have property to non-producing individuals;
4. in ensuring trade turnover.
Task 2
Question 1. The financial system of society is:
1. a set of spheres expressing the relationships of subjects regarding changes in a monetary object;
2. the totality of funds of all entities;
3. specific form of implementation of the state budget;
4. the totality of the country's budgets.
Question 2. Which feature of the classification of finance is not one of the main ones?
1. subjective;
2. object;
3. formal;
4. social.
Question 3. What is not the function of the financial system?
1. distribution of monetary resources between subjects of society;
2. control of the movement and use of financial resources of the subjects of society;
3. redistribution of monetary resources between subjects of society;
4. preventing losses of company entities.
Question 4. Subjective financial system does not include:
1. finances of citizens;
2. formal finance;
3. international finance;
4. finances of organizations.
Question 5. Name the most quantitatively significant area of ​​finance:
1. public finances;
2. international finance;
3. finances of citizens;
4. finances of organizations.
Task 3
Question 1. What is “politics”?
1. special activities of people to protect the interests of society;
2. the concept of relations to protect and realize the interests of some subjects as opposed to the interests of other subjects of society;
3. special activities of state authorities;
4. special activities carried out to improve the well-being of the people.
Question 2: What is not the reason for the existence of politics?
1. variety of forms of ownership;
2. diversity of needs of economic entities;
3. limited life values;
4. division of society into many economic entities.
Question 3. Arrange the following types of policies in order of expansion: financial (1), revenue (2), financial regulation policy (3), socio-economic (4).
1. 1, 2, 3, 4;
2. 3, 2, 1, 4;
3. 2, 3, 4, 1; 1
4. 4, 3, 1, 3.
Question 4: Which of the following policies is not a core policy?
1. individual;
2.state;

Additional information

Question 5. Informal politics is:
1. policies implemented by citizens;
2. unspoken policy;
3. prohibited policy;
4. policies implemented by legal entities.
Task 4
Question 1. Financial management is:
1. the totality of all bodies and organizations involved in financial management;

3. a scientifically based system for managing financial relations, value flows and funds of the organization;
4. system of interaction of financial relations, flows and funds of funds.
Question 2. The objects of financial management are not:
1. monetary funds;
2. cash flows;
3. categories and financial leverage;
4. budgetary relations.
Question 3. The reasons for financial management do not include:
1. the subject’s desire to lead;
2. presence of an economic entity (organization);
3. the action of commodity-money relations;
4. variety of forms of ownership.
Question 4. Strategic financial management is carried out by:
1. top officials (owner) of the organization;

3. control structures;
4. all members of the organization.
Question 5. Financial management tactics are dealt with by:
1. control structures;
2. second parties (performers);
3. top officials (owner) of the organization;
4. all members of the organization.
Task 5
Question 1. Financial forecasting is:
1. subjective activity of people in creating forecasts;
2. a mechanism for predicting the state of finances of a particular economic entity in the future, for one or another perspective;
3. a scientifically based system for managing financial relations, value flows and funds of the organization;
4. the process of developing and adopting targets for the financial activities of economic entities.
Question 2. Forecasting methods do not include:
1. extrapolation;
2. modeling;
3. program-targeted;
4. method of expert assessments.
Question 3. Planning is:
1. the totality of all bodies and organizations involved in financial management;
2. a set of objects and subjects of financial management;
3. a scientifically based system for managing financial relations, value flows and funds of the organization;
4. subjective process of developing and adopting targets for the financial activities of economic entities.
Question 4. Financial planning objects do not include:
1. monetary funds;
2. cash flows;
3. economic categories;
4. budgetary relations.
Question 5. Does not engage in financial planning:
1. citizen;
2. designer;
3. Minister of Finance;
4. entrepreneur.
Task 6
Question 1. Give the correct definition of financial control:
1. one of the stages of financial management;
2. a set of activities of people’s subjective activities to monitor, compare, check and analyze the movement of monetary resources;
3. a set of actions to verify the activities of business entities;
4. form of implementation of the control function of finance.
Question 2. What is not one of the main reasons for the need to control socio-economic processes?
1. lack of 100% probability in a certain development of processes;
2. the importance of preventing the occurrence of crisis situations;
3. the desire to develop the success of a specific activity;
4. identification of financial irregularities.
Question 3. Public financial violations do not include:
1. misuse of financial resources;
2. unprofitable activities of organizations;
3. secret borrowing of funds of some entities from others;
4. corruption.
Question 4. What is not the main task of financial control?
1. checking the expenses of all parts of the financial system;
2. compliance with accounting and reporting rules;
3. preventing theft and identifying reserves for the effective use of funds;
4. checking the rules

The essence of finance. Finance is an economic category of commodity production. Monetary nature of financial relations. The place of finance in the system of commodity-money relations. Boundaries of finance in the sphere of commodity-money relations. Specific signs of finance. Financial resources as material carriers of financial relations. Definition of finance.
The relationship of finance with other economic categories in the process of cost distribution. Financial and price methods of cost distribution; their common features and differences. Finance and wages, their interaction. General and specific in the functioning of finance and credit in the distribution process.
Section 1.1.1 The essence of finance
The term “finance” comes from the Latin “finis” - end, ending, finish. In the Ancient World and the Middle Ages, in monetary relations arising between the state (king, judges, etc.) and the population, the word finis meant final settlement, completion of monetary payment. Persons who paid fees in favor of the judge, the king or various government bodies received a document in their hands - “fine”. From the name of this document came the Latin term “financia”, which meant cash payment.
In the 16th century, the term “finance” arose in France, meaning cash, income, payment. This term was used to define the totality of public income and expenditure and gradually transformed into the modern concept of finance.
The long process of development of commodity-money relations radically changed the content of the phenomenon of finance. If earlier in these relations the main role was played by the monarch, the state as owners and supreme rulers, then in the second half of the 20th century citizens became the main owners of values ​​and enterprises, and the state, represented by the authorities, acted as an intermediary and consumer of redistributed values. Most domestic economists of the socialist period of the 20th century rightly saw the essence of finance in the distribution and redistribution of monetary funds, but irrationally associated them, firstly, with expanded reproduction, and secondly, with the state.
To understand the existing variety of definitions, it is necessary to clearly trace the history of the phenomenon of finance.
In conditions of limited life values, the continuation of the human race is impossible without such a social process as their redistribution from the able-bodied to the disabled. How more people produces surplus product, the greater the amount of value that can be redistributed.
Redistribution can be direct or indirect. The first is carried out within the framework of one form of ownership, when there are no economic concepts of “mine” and “yours”. The second occurs through the economic concepts of “mine”, “yours”, this is a socially affirmed transfer of the values ​​of one economic subject (owner) to another, i.e. public institution of property.
A kind of catalyst for distribution and redistribution relations is the development and establishment of the universal dominance of commodity-money relations, the transformation of all values ​​(material, spiritual, social, sensory, etc.) into goods and the need for their value expression in various market commensurators (money, securities, etc.) .d.).
As a result, we observe the presence of the following phenomena:
formation of independent economic entities and owners of values;
widespread distribution and redistribution of life values;
isolation and constant changes in the real and fictitious value of material goods.
Their interaction gives rise to an objective system of movement of life values ​​from one subject to another, which represents the prototype, the basis of finance.
How does this sphere function, what is this phenomenon? How are financial resources generated and spent? The answers to these and many other questions related to monetary funds form the subject of the study of finance. The object is personalized economic subjects: a person, a team, a state and other structures.
Money performs various functions and, above all, the role of a measure of the utility of goods, a universal means of exchange and payment. They are not a direct source of additional life values, but act as an objective, independent of people’s consciousness, specific form, the cost shell of the formation and use of monetary resources of specific subjects of society. The organic interaction of this shell, monetary resources and specific entities forms finance.
Thus, finance is an objective economic phenomenon, which is a system of formation, distribution, redistribution and use of monetary funds of subjects of society. On the one hand, this phenomenon acts as an economic category, and on the other hand, it is a subjective cost instrument of activity.
As an economic category, finance expresses the relationship between economic entities regarding the formation and use of monetary funds. That is, finance is not only money, but an organic unity of three elements: at least two subjects, an object and the relationship itself. In the absence of any of them, finance as a category and phenomenon does not exist. The basic model of finance is the diagram in Fig. 1.1.

Rice. 1.1. Model of the essence of finance

Subjects of financial relations in a modern market economy can be: 1) citizens (individuals), 2) family, 3) organizations (legal entities), 4) state, 5) interstate legal entities (transnational and international organizations), 6) associations of states , 7) informal organizations (collectives). All of them become official counterparties if they have the legal authority provided for by the relevant legislation.
The first three (1-4) types form the internal system of financial entities of each country, the last three (5-7) - the international sphere. Of course, real relationships are much broader and more varied. Along with legal subjects of finance, there can be and exist non-legal, so-called informal subjects (organizing committees, clubs, lodges, “troikas”, “sevens”, etc.). They make financial decisions on the formation and use of monetary funds from positions of strength, traditions, customs, and “gentleman’s” agreements. There are especially many such entities in the category of individuals. They form the unofficial (shadow) sphere of education and distribution of funds.
The object of finance represents financial resources. They cover the entire set of real and fictitious values ​​that have a value expression. This is, firstly, money (paper, electronic, etc.), which in itself does not contain value, but is capable of personifying real material, spiritual and social values; secondly, a variety of securities (shares, bonds, patents, insurance, etc.), reflecting the tangible and intangible values ​​of individuals, legal entities and government agencies; thirdly, the various obligations of economic entities. In this case, the assessment (value) of fictitious values ​​may be greater, less or equal to real existing values ​​(the material content of national wealth, GDP).
The set of relationships between subjects regarding changes in an object constitutes a complex multifaceted hierarchical system (Fig. 1.2).
1st group. Financial relations of citizens cover connections between individuals - individuals. This includes various monetary relations regarding the formation and use of funds of individuals within the circle of relatives, acquaintances, who take an active or passive part in the activities of a particular person. This area of ​​finance mediates consumption, reproduction and human development, as well as the process of production of life values ​​at the primary level, sometimes including acts of purchase and sale of labor and other characteristic financial aspects of a market economy.


Rice. 1.2. System of financial relations
The relationship of an individual with his family, which makes up the 2nd group, is organically connected with this area.
The 3rd group includes the relationships of individuals with non-state production, financial, credit, commercial and other organizations regarding the formation and use of monetary resources. This is the main sphere of relations through which, on the one hand, the generation of income in the form of wages, dividends, interest, borrowed resources, etc. occurs, and on the other, the investment of funds in the initial funds (fixed capital, etc.) of non-governmental organizations . The last point is extremely important for understanding the role and place of personal finance. It is he who radically changes the socio-economic significance of personal finance, turning it into a basic functional element and legal basis of a market economy. The initial economic base of enterprises in a market economy under conditions of private ownership can be exclusively individual financial capital, the personal wealth of citizens. There is no impersonal joint, collective property, there is only management of joint property. Any association is based on the participation (share or full) of individual owners. Hence, all partnerships and joint stock companies are ultimately pieces of personal finance. Accordingly, when liquidating organizations, the individual interests of shareholders and shareholders are satisfied first and last.
The 4th group of relations reflects the flow of funds between citizens and state legal entities, in which the main place is occupied by the movement, on the one hand, of payments to the budget, and on the other hand, of various targeted cash payments from government organizations (wages of budget employees, state pensions, social benefits, etc.).
The 5th group of relations arises when there are several owners (shareholders, shareholders) of the organization and expresses the relationship between them regarding the formation of initial monetary funds (initial capital) and the distribution of final financial results. This is the initial and final sphere of finance of collective entrepreneurial activity.
The 6th group of relations is the monetary connections of citizens with economic entities (individuals, non-state legal entities, government agencies) of foreign countries, as well as with interstate organizations and associations of countries in terms of investments, income, payments, sponsorship, etc.
7th group - relations of non-governmental organizations with other non-governmental production, financial, credit, commercial and other organizations regarding the formation and use of monetary resources. Through this sphere of relations, on the one hand, the formation of dividends, interest, borrowed resources, etc. occurs, and on the other, the sale of created goods and services. The last point is important for understanding the role and place of finance in organizations. It is he who ensures market recognition and monetary metamorphosis of the newly created value of goods and the subsequent satisfaction of the material interests of production participants - owners in income, and employees in wages.
The 8th group of relations reflects the relations between non-governmental organizations and state legal entities, in which the main place is occupied by the movement, on the one hand, of payments to the budget, and on the other, of various targeted cash payments from state organizations.
The 9th group of relations are monetary connections of non-governmental organizations with economic entities (individuals, non-state legal entities, government agencies) of foreign countries, as well as interstate organizations and associations of countries in terms of the purchase and sale of labor, investments, income, payments, sponsorship etc.
The 10th group of relations covers relations between the state and foreign economic entities.
The set of these relationships can be classified not only by subjects, but also by a) functional role and significance in a market economy (consumer of life values ​​and producer-consumer); b) the size and nature of monetary funds; c) the degree of plannedness of relations.
The initial, main and final relations are between individuals. Their purpose is to ensure the fulfillment of human needs, their development and reproduction through the formation and use of monetary funds. According to the degree of planning, financial relations can be planned, forecast (indicative) and chaotic. Much is determined by the interaction of forms of ownership.
According to their social form, relationships are divided into formal and informal. Formal relations include those that correspond to the generally recognized forms (law) of society. Informal relationships are unspoken, illegal relationships (racketeering, theft, robbery, looting, etc.).
The object of the relationship is the value of GDP, total product, and sometimes national wealth. All this makes finance a powerful economic tool for the distribution and redistribution of the cost of life between economic entities in a society with a market economy.
Finance as a subjective cost instrument for the functioning of economic entities forms a mechanism for making decisions regarding the formation and use of monetary funds.