2024 Author: Howard Calhoun | [email protected]. Last modified: 2023-12-17 10:16
The socio-economic essence of finance lies in the relations that take place between the state and other countries, individuals and legal entities in the distribution, formation and use of decentralized and centralized funds, which are formed into funds.
The totality of monetary and distribution relations is the economic essence of finance, without which the circulation of production assets is impossible.
Financial relations based on the movement of the centralized money supply of state funds are distributed in the public sector and in government non-budgetary organizations.
Finance performs control and distribution functions.
Redistribution of state income is the distributive function of the state. When primary income appears, the concept of “national income” arises, which is divided before all participants into the salaries of workers in the production sector, the income of budgetary organizations, in order to fulfill their obligations to the state, banks and other lending organizations.
Determined by the Statesocio-economic essence of finance, which works for the population and stimulates production.
Financial resources are carriers of monetary relations. Receipts and savings, which are formed by the state and business entities, are used in non-fund and fund forms.
Accumulative system of formation, separate existence, targeted use - a distinctive feature of financial funds. They are intended for the sinking fund and budget, to meet public needs.
One of the functions of finance is fiscal, with the help of which part of the income is withdrawn from business entities and the population to provide for the state apparatus, for defense needs, for the non-productive sector (archives, libraries, schools, museums, theaters). This means that it is also included in such a concept as the socio-economic essence of finance.
In the course of the work of the state and various financial organizations, funds are accumulated, which can then be redistributed as loans and are sources of lending.
Credit is a financial transaction that allows businesses and individuals to borrow money to buy material assets. There are several types of loans: bank loans, trade loans and credit cards, installment.
The concept and essence of the loan is to solve the problems that face the economic system of the country. Here is included andthe socio-economic essence of finance, for example, in the issuance of soft loans for an affordable purchase of housing. By accumulating free capital, a dynamic production process is ensured. It accelerates money circulation and provides various relations: investment, insurance, promotes the development and regulation of market relations.
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