2024 Author: Howard Calhoun | [email protected]. Last modified: 2023-12-17 10:16
First, let's define what money is: its essence lies in the fact that it is the universal equivalent of the cost of other services and goods.
At the time when there was a surplus of goods, a universal means of payment was required. At first, people produced what they needed for their needs, some changed food for clothes and vice versa. Over time, the exchange process became popular, and then there was a need to create such a product that could serve as a means of payment for any other type of service. This is how money appeared.
Essence
The essence of money is divided into 5 points:
- means of savings and savings;
- means of payment;
- means of circulation;
- cost measures;
- world money.
Let's take a closer look at each of the points.
Measure of value
Appears at the time of the price, determining the cost of a service or product. The monetary value changes (price), it depends on the following indicators:
- exchange conditions;
- production conditions.
Medium of circulation is money
The essence of a means of payment is to be beneficial for both parties (the seller-buyer) to exchange. And money is an intermediary in the transaction. In addition to being a means of circulation, it is also a functional means of payment (loans, mortgages, loans). The latter was the beginning of the appearance of plastic cards.
Means of payment
If there is not enough money to pay for a product or service, then there is an opportunity to take what you need on credit or with a deferred payment: product-deferred-money or product-credit-money.
World Money
The essence of money is that it is used for international payments. Today, the main international unit of payment is the dollar.
Types of money
They are divided into two groups: cash and non-cash. Then they are divided into six subgroups.
Cash:
- bargaining chip;
- paper money;
- credit (card) money.
Cashless:
- credit cards (plastic);
- payment cards (plastic);
- electronic finance.
Let's look at some of the subgroups in detail
Treasury bills, which are issued by the state, have no value as real money. But they are applied in all calculations and payments. Banknotes are also referred to as paper money.
Credit money is checks, bills, banknotes.
Electronic financial resources are money, the essence of which is that they can pay for purchases / bills on the Internet, that is, they are in the electronic payment system("WebMoney", "Yandex-money", etc.) and on bank accounts in electronic form.
Functions of money
1. Money is a universal opportunity to evaluate the value of goods (a measure of value).
2. Money is a universal means of purchase (medium of circulation).
3. distribution function. Implies a transition from the owner to the recipient.
4. Savings and savings.
5. Currency exchange.
Conclusion
This article reveals what money is, types, essence, functions. Payment means are necessary for servicing the national economy. Their main function is to pay for goods and services. The type of money depends on the material of manufacture.
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