Finance, Credit, Investments – Economical Categories

Scientific works in the theories of finances and credit, according to the specification of the research object, are characterized to be many-sided and many-leveled. The definition of totality of the economic relations formed in the formation, distribution, and usage of finances, as money sources are widely spread. For example, in “The General Theory of Finances,” there are two definitions of finances:

1) “…Finances reflect economic relations, formation of the funds of money sources, in the distribution and redistribution of national receipts according to the distribution and usage”. This definition is given relative to the conditions of Capitalism when cash-commodity relations gain universal character;

2) “Finances represent the formation of centralized and decentralized money sources, economical relations relatively with the distribution and usage, which serve to fulfill the state functions and obligations and also a provide the conditions of the widened further production”. This definition is brought without showing the environment of its action. We share partly such explanation of finances and think expedient to make some specification.

First, finances overcome the bounds of distribution and redistribution service of the national income, though it is a basic foundation of finances. Also, the formation and usage of the depreciation fund, which is part of the financial domain, belongs not to the distribution and redistribution of the national income (of newly formed value during a year) but the distribution of already developed weight.

This latest first appears to be a part of the value of central industrial funds; it is moved to the cost price of a ready product (that is, to the deal, too), and after its realization, it is set to the depression fund. Its source is considered as a depression kind in the consistence of the ready products cost price.

Second, the main goal of finances is much broader than “fulfillment of the state functions and obligations and provision of conditions for the widened further production”. Finances exist on the state level, the manufacturer’s and branches’ group and most manufacturers do not state such conditions.

V. M. Rodionova has a different position about this subject: “Real formation of the financial resources begins on the distribution stage, when the value is realized, and concrete, the economic forms of the realized value are separated from the consistence of the profit”. V. M. Rodionova accentuates finances as distributing relations, while D. S. Moliakov underlines the industrial foundation of finances. Though both of them give pretty substantiate discussion of finances as a system of formation, distribution, and usage of the funds of money sources, that comes out of the following definition of finances: “financial cash relations, which forms in the process of distribution and redistribution of the partial value of the national wealth and total social product, is related with the subjects of the economy and formation and usage of the state cash incomes and savings in the widened further production, in the material stimulation of the workers for satisfaction of the society social and other requests.

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