Forms of money. Essence, functions and types of money What money is short and clear

To begin with, let's give a definition of what money is: their essence lies in the fact that it is a universal equivalent of the cost of other services and goods.

In those days when there was a surplus of goods, it took universal remedy payment. At first, people produced what they needed for their needs, some changed food for clothes and vice versa. With time metabolic 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. Thus, money appeared.

Let's take a closer look at each of the points.

The measure of value

Appears at the time of the occurrence 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 exchange - money

The essence of the means of payment lies in the fact that it is beneficial for both parties (seller-buyer) to make an 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.

Instrument of payment

If to pay for a product or service, then it is possible to take the necessary on credit or with or goods-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. They are further divided into six subgroups.

Cash:

Small coin;

Paper money;

Credit (cards) money.

Cashless:

Credit cards (plastic);

Payment cards (plastic);

Electronic finance.

Let's look at some of the subgroups in detail.

Paper money includes treasury notes, which are issued by the state, have no value as material. 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. It implies a transition from the owner to the recipient.

4. Savings and savings.

5. Currency exchange.

Conclusion

This article reveals what an entity, functions are. 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.

In this article, we will consider what types of money are, what their essence is, consider some examples, and also trace the evolution of types of money.

Main types of money

Globally, there are two main types of money:

Valid Money, i.e. money, the face value of which corresponds to their real (internal) value. An example of this type of money is money in the form of ingots and coins made of gold (see). The vast majority of monetary systems of early eras functioned on the basis of real money (see).
fiat money, i.e. money, the real value of which, as a rule, is significantly lower than their face value. For example, the cost of manufacturing a 100 dollar bill is less than 10 cents. Fiat money is the basis of all modern monetary systems.

Money arose at a certain stage in the development of society (see), when a certain intermediary commodity stood out in the exchange process, which began to play the role of a universal measure or, so to speak, the equivalent of the value of exchanging goods. Thus arose historically the earliest type of money - commodity money.

commodity money

In different historical epochs and among different peoples, various goods and objects acted as money (i.e. intermediary goods): cattle, grain, salt, tea, tobacco, jewelry, arrowheads and spears, there were also completely “exotic” objects eg cowrie shells etc. For more high level development of our civilization, the above items were replaced by precious metals - mainly gold and silver.

commodity money(they are still quite often called real money, natural money, real money or real money) - this is a type of money, in the role of which a certain product acts, which has an intrinsic value and has some utility. Therefore, such a commodity can be used both as money and directly as a commodity (according to its main intended purpose). For example, salt could be used both as money (to carry out barter transactions) and as a commodity for personal consumption - direct consumption, salting meat, for dressing skins, etc.

With the development of exchange, the role of money was assigned to one commodity - noble metals (gold and silver). This was due to their physical and chemical properties, such as:

portability (there is great value in a small weight - unlike, for example, salt);
transportability (convenience of transportation - unlike tea);
divisibility (dividing a gold bar into two parts does not lead to a loss of value - unlike cattle);
comparability (two bars of gold of the same weight have the same value - unlike furs);
recognition (gold and silver are easy to distinguish from other metals);
relative rarity (which provides noble metals with a sufficiently high value);
wear resistance (noble metals do not corrode and do not lose their value over time - unlike furs, leather, shells).

Based on precious metals different countries there were different types of monetary systems:

(when only one metal was used as money - either gold or silver);
(when both metals were used as money).

At first, noble metals were used in the form of ingots. The exchange service required constant weighing and division of ingots. Therefore, in the 7th century BC. in ancient Rome, in the temple of the goddess Coin, ingots began to be given a flat shape, the weight of the metal was set, and a portrait of the ruler was minted. This is how the first coins and money circulation based on coins appeared.

Although commodity money has long gone out of use, at the moment, under certain conditions, some goods continue to perform the functions of money. For example, in prisons, cigarettes are such goods for prisoners, in places of hostilities weapons and ammunition can be used as money, during severe economic crises - sugar, salt, tea, matches, etc.

Commodity money went out of circulation due to the fact that they had a number of shortcomings. As a rule, this is:

non-portable (non-compact): took up a lot of space (large volume) - inconvenient for storage;
heavy - inconvenient during transportation;
indivisible (for example, live cattle);
deteriorate during storage;
too expensive to manufacture (because the real value of money (goods) must correspond to the nominal value, otherwise such goods will not be able to perform the functions of money);
the insufficiency of the amount of money (goods) to meet the needs of the country's economy as production and the level of economic development.

Currently, the role of commodity money can be investment coins made of precious metals, which have the force of legal tender within the country.

Rice. Types of money

secured money

secured money- evolutionally the next type of money after commodity. Secured money (they are also called change money, representative money) is money, in the role of which are signs or certificates that can be exchanged at sight for a fixed amount of a certain commodity or commodity money, for example, gold or silver. In fact, backed money is a representative of commodity money.

The appearance of secured money was primarily due to ease of use - the convenience and greater safety of transportation, the absence of real damage and erasure of gold in the process of circulation.

It is believed that the first secured money appeared in ancient Sumer, where figurines of sheep and goats made of baked clay were used for payment. These figurines could be exchanged upon presentation for live sheep and goats.

Credit money arises with the development of commodity production, when the purchase and sale is carried out with an installment payment (on credit). Their appearance is connected with where they act as an obligation that must be repaid on time.

A feature of credit money is that their release into circulation is linked to the actual needs of turnover. The loan is issued against security, which are certain types of stocks, and the repayment of loans occurs when the balance of values decreases. Thanks to this, the volume of means of payment provided to borrowers can be linked with the actual need for turnover in money.

Credit money does not have its own value, it is a symbolic expression of the value contained in the equivalent commodity. Their release into circulation is usually carried out by banks when performing credit operations. Credit money has gone through the following development path: bill, accepted bill, banknote, check, electronic money, credit cards.

There is another system for classifying money: cash and non-cash.

Money is a means of expressing the value of goods and services that exist today in our world. This definition is built on the concepts of value, which is the most common in world science.

You can also consider another concept, according to which money is a completely liquid medium of exchange. However, they have two qualities:

exchanged for any product;
able to change the value of this commodity.

The essence of the function and types of money

Essence Money lies in their main functions.

The measure of value. It is determined by the price of each type of goods and is measured in monetary terms. As measures of prices, money can even act in the form of numbers.
Means of circulation. As you understand, the expression of the value of the goods does not mean its implementation on the market. Previously, when the economy was less developed, money served as an exchange of a certain amount for some kind of commodity. Now, with the emergence of credits, the function of a means of payment comes to the fore.
Means of payment. The essence of this concept is that the time of purchasing products or services may not coincide with the time of payment for them, since the purchase can be made in installments or on credit.
Means of savings and accumulation. They act as a cash reserve.
World money. Designed for use in international payments.

Types of money and their features

There are several main types of money.

Valid Money- their nominal value coincides with their real value, that is, the value of the material from which they are made. This refers to the previously very common metal, gold or silver coins. A feature of real money is their stability, which was ensured by the free exchange of tokens of value for gold coins.
Real money substitutes- the sum of their nominal value is higher than the real one, that is, their price is equivalent to the social labor spent on their production.

Essence and types of modern money

Modern types of money are those material means that allow us to purchase goods and services in modern world. Recently, and have been included in this species. They are stored on electronic wallets and allow their owners to pay for purchases on the Internet.

Paper money is a representative of real money. They are made of special paper and are issued by the state, or rather the state treasury to cover their expenses.
Credit money - appeared in connection with the performance of money as a means of payment, at a time when, with the development of commodity-money relations, purchase and sale began to be carried out with an installment payment or on credit. In other words, this is money that can be borrowed from a bank or other financial institutions. True, because of the interest taken in this way, it will be very difficult.

The types of cash are coins and banknotes, in other words, the money that you can directly touch and pay with in a store.

Types of paper money

Paper money is also represented, as mentioned earlier, in the form of banknotes. There are many types of paper money, including:

Euro;
Rubles;
dollars;
Pounds sterling, etc.

Money surrounds people everywhere. This is a specific product that serves as an equivalent for estimating the value of other goods and services. Everything can be exchanged for money. This is the only object that is created in order to get rid of it sooner or later. A kind of financial asset is used to complete purchase and sale transactions. It is impossible to imagine life in a civilized society without money. But once they did not exist at all.

When did money circulation begin?

Money in its classical form arose spontaneously. Commodity circulation existed even in ancient times. People exchanged things and food. When there was a surplus of goods, there was a need for a special asset, which, when released into circulation, could be exchanged for one or another commodity. Money has become such an asset. The main functions of money are precisely in circulation for the purpose of exchanging goods between consumers.

Since ancient times, absolute liquidity has been considered the main property of money. They can be fully exchanged for a product or service. At different times and various countries precious metals, feathers, cocoa beans, cattle were used as money. Only over time it became clear to people that it is better to make money with a constant weight and in a certain shape. Thus, the coins familiar to many arose. The metal was most suitable for the manufacture of a financial asset. It was easy to process and had good wear-resistant characteristics. The types and functions of money have changed over time. But their form has been preserved from ancient times. These are round coins or paper products.

The very first coins that were used as financial assets appeared in China in the 17th century BC. Money was made from an alloy of silver and gold. The function of money was to exchange them for goods and services. Thus, barter was replaced by financial turnover. Paper money appeared much later, also in China. After all, it was in this country that paper first appeared. The first money consisted of receipts for precious metals and stones, which were deposited in special shops.

Essence of money

Money is the main component of the economy of any society. The financial relations of representatives of individual countries could not be improved without a special asset. solvency individual person or societies as a whole express money. The essence and functions of money are closely related. The main nature of financial assets is that they can be used to assess the quality and demand for a particular product or service.

Today, money is the universal equivalent. With the help of barter, of course, you can get required item. But it will not be possible to accumulate assets. It is no coincidence that even in ancient times, money circulation appeared, from which the division of society into classes began. It is money that divides people into rich and poor. The types and functions of money determine the development of the society in which they circulate.

In conditions market economy money and its functions are constantly changing. Exchange rates depend on the events that take place in a particular society, natural disasters. One kind of money can strengthen or fall in relation to another kind. Despite this, the scope of the use of money is increasing every year. New types of financial assets are emerging. A striking example is electronic money, with which you can pay for the same goods and services or increase your capital.

Main types of money

All types of money can be divided into two large subgroups. This is commodity finance and symbolic. More specific types and functions of money may depend on the society in which they circulate. Based on the fact that they arose due to the need for commodity exchange, commodity finance is the main type. Money is a commodity that is capable of evaluating the value of all other goods and services. For a long time, precious stones and metals were used as commodity money due to their properties.

Today, full-fledged money is used, the value of which fully corresponds to the actual value of the metal. Metal coins are produced in various denominations. Thus, it is much easier to pay for a particular product. The coin has established external features. Money is made in a certain form, with a specific pattern.

Commodity also includes paper money. The types and functions of money in this format do not differ from coins. They were created in order to save metal. Paper is much cheaper. But in modern society, counterfeiting paper banknotes is almost impossible. They are made in a special way by state-owned enterprises. The highest quality dyes and paper are used. The difference between the real and nominal value of paper money is huge. Due to this, the share premium of the state treasury is formed. Money is able to cover the budget deficit.

Paper financial assets have a special economic nature. They are almost always unstable. There can be no permanent fixed exchange rate. The issue of money is not regulated by trade. That is why inflation occurs.

loan money

The total volume of services received, contracts concluded and obligations - all this is credit money. The essence, functions, types of this financial asset is determined by the agreement of the two parties. In any case, the essence of the loan is to return the money with interest. Credit finance can be issued in the form of banknotes, electronic money, bills of exchange or checks.

Separately, it is worth highlighting credit cards. They are the key to the bank account where the money is. The essence and functions of this type of money are the same as those of other types of credit finance. The only difference is that the loan agreement is drawn up once. It is possible to withdraw money from the account an unlimited number of times within the limit provided by the bank. The only thing you need to do is make the monthly minimum payment.

Money as a measure of value

Money is today the only instrument of economic relations in any society. The functions of financial assets cannot be realized without the participation of people. By setting prices, the value of a good or service is determined. Simply put, the price is the value of a particular object in terms of money.

Money fulfills the ideal function of a measure of value. In the modern world, banknotes of various denominations are issued. Thanks to this, you can set the most accurate price for a product. Under these conditions, barter loses its relevance.

At the same time, the function of circulation of money as a measure of value is performed virtually. Indeed, in order to determine the cost of goods and hang a price tag on it, real financial resources are not needed. The seller sets the price on his own, in his mind. In the same way, in order to find out the cost of a product or service, it is not at all necessary to have real money available. All you need to do is to study the price tag or price list.

Measuring the cost of various services and goods can be compared to measuring distance in meters. The monetary unit acts as a scale. Thus, the value of individual resources, services and goods is determined. Prices in a particular market can be influenced by a huge number of contracts for the sale of goods and the provision of services. The more the demand for a separate object of the economy grows, the faster its value increases. It turns out that the main functions of money are closely related. The functioning of financial resources as a measure of value cannot be carried out without real money circulation. At the same time, money acts not only as a means of circulation, but also in the form of a means of payment.

Functions of money as a medium of exchange

Only real money can be used as a medium of exchange. The functions of money are the simultaneous circulation of goods and financial resources. The seller receives monetary assets, and the buyer at the same time becomes the owner of the desired product. In this case, the transaction is considered genuine only if there are relevant documents. When buying real estate or expensive objects, a contract of sale is concluded. Checks are used in shops with small goods.

In the global economy, all functions of money are important. The means of appeal must be implemented. If the seller does not enter into an agreement with another commodity owner using the proceeds, the money will lose its value. Crisis phenomena in the economy are generated by a break in the chain of purchase and sale. It was the impossibility of realizing the function of money as a means of circulation that became the impetus for the emergence of paper financial resources. The amount of money did not meet the need for financial circulation. In this regard, history knows many cases of serious economic crises. In order for the function of a medium of circulation to be realized in full force, each commodity must be assigned a value equivalent to the weight of one or another precious metal.

More correctly perform the function of money as a means of circulation, metal coins. At the same time, it should be borne in mind that today not the highest quality metal is used for the manufacture of coins. Money is erased, losing its original weight. In order for the function of money to continue to perform correctly, low-quality coins must be disposed of in a timely manner.

Money is a means of payment

For most people who do not understand the nuances of economics, money serves as a payment function in the first place. In this case, the buyer may not necessarily pay for the goods immediately. The function will be implemented even if a loan agreement is drawn up. Often there are cases when the goods have already been paid for, but the owner cannot use them yet (manufacturing of furniture to order). At the same time, money also acts as a means of payment. To pay taxes, rent housing, wages, employees also need financial resources. This is the function of money. The means of payment can be either real or virtual. Electronic money Lately are becoming more and more in demand. People buy goods via the Internet, pay for services through special services. It is not necessary to have a certain amount of money in your wallet. The main thing is to open a bank account.

Another possibility of an economic crisis is connected with the function of money as a means of payment. This became especially true with the development of the credit sector. It often happens that the payer does not have funds at the end of the loan agreement. He is unable to meet his financial obligations. At the same time, many commodity owners buy goods from each other on credit. The insolvency of one economic entity leads to the insolvency of another. Banking institutions are a prime example. If one client cannot repay the money on the loan, the financial institution will not be able to return the deposit funds to another client.

Money as a store of value

Financial resources that are not involved in circulation and are not used as payments can become an object of accumulation and increase in wealth. What functions money performs, people have understood since ancient times. But it was not always possible to implement them correctly. Accumulating wealth, many simply depreciated the money. Inflation, economic crisis, warfare can cause huge wealth to lose its value.

Saving money at home is not practical. In ancient times, people kept treasures and gold coins in chests. Thus, the money lay without movement, withdrawn from commodity circulation. It was not possible to increase wealth in this way. The one who does not keep money, but puts it into economic circulation, does the right thing. A smart entrepreneur who spends a certain amount to develop his business only increases the money. The functions of money as a means of accumulation are fully realized.

The accumulation of money today is a prerequisite for the development of any production. At the same time, the state functions normally, inflation does not hit the pockets of citizens. All money and its functions are closely related. Finance - as a means of circulation - can simultaneously act as a means of accumulation. The main thing is to approach the issue of saving money wisely.

What is world money?

The development of the country is impossible without international economic relations. What functions money performs should be understood by all heads of state. Moreover, each individual country can have its own currency. In the world market, many monetary units are losing their power. If the state does not have a high economic development, its currency will not be in demand.

In the international market, the currencies of individual developed countries (US dollar) are most often used. In addition, artificially created currencies may be used. The prominent representative is the euro. World money and their functions are closely related to the finances that work within a particular state. The only difference is that money circulation takes place at the international level. On the international market, not only individual states, but also private organizations and structures can act as sellers and buyers.

Modern monetary system

Today, paper money is widely used. The functions of money determine the degree of development of a particular state. If they are fully implemented, the economic crisis can be avoided.

Modern paper money has its own distinctive features. First of all, this is the abolition of the gold content. Paper cannot act as an equivalent to precious metal. Gold has left the international settlement system.

Over the past few decades, the monetary system has been characterized by a decrease in cash and an increase in the amount of electronic money. At the same time, gold practically does not fulfill its monetary functions today.

What functions of money would not be provided, they are necessarily regulated by the corresponding government agency. The financial condition of the country as a whole and its position in the international market depend on its work.

It is believed that this is historically the very first type of exchange equivalent. At different times, different peoples could use shells, domestic animals and their skins, some standard valuables, such as spearheads, as money. At a higher level of development of civilization, gold and silver coins became such an equivalent. Commodity money is inconvenient for frequent circulation, because it is too heavy, indivisible, or deteriorates during storage. But most importantly, they are too expensive to manufacture. After all, the cost of their manufacture must correspond to their face value, otherwise natural money will not fulfill the function of an ideal commodity, acting as an equivalent of the cost of other goods. At the same time, with the development of the economy, the need for money increases, which makes the state's monetary system too expensive. The cost of money in such an economy is always comparable to the size of GDP, that is, too many resources are directed not to the production of goods and services, but to the production of money, which reduces the country's overall production potential.

Currently, commodity money is used as a store of value and for collections (investment coin).

Second, secured or representative money. These include banknotes that can be exchanged for one or another amount of the underlying real asset: gold, silver. Their appearance was due primarily to ease of use - the convenience and greater safety of transportation, the absence of real damage and erasure of gold in the process of circulation, and so on.

However, today, after the abolition of the gold standard, banknotes are no longer guaranteed to be exchanged for a fixed commodity and have become symbolic money, retaining their former name.

Thirdly, the so-called fiat, or symbolic money. These are modern banknotes. They are being released central banks. The value of this money is determined by its quality, that is, by how it performs its functions and to what extent it is recognized as a means of payment by participants in economic processes. Fiat money does not actually have its own value, but acquires it due to the fact that they perform their functions. And besides, their value is based on the fact that the state recognizes them as legal tender in its territory and accepts them as payment of taxes.

Issuing fiat money allows you to receive two types of income: seigniorage and inflation tax. Seigniorage is a profit due to the difference in price between the value of money produced and its market, exchange value. Inflation tax - income received by the issuing bank or government by issuing additional money to finance its expenses. These actions cause inflation, which is why it is customary to call such profit inflationary.

It should be noted that, in addition to banknotes and coins, fiat money includes non-cash money in bank accounts, as well as electronic money.

Fourthly, modern economic science singles out credit money as a separate group.

There is another system for classifying money: cash and non-cash. Moreover, it is customary to refer to cash not only banknotes and treasury notes, but also such credit money: as bills, checks and banknotes. Non-cash money includes entries in bank accounts, including payment plastic cards, credit plastic cards and electronic money.

Today, Russian rubles, like the main world currencies, are fiat money. The amount of money in circulation is called the money supply.

In Russia, monetary circulation and the issuance of money are regulated by Article 75 of the Constitution of the Russian Federation, according to which “monetary unit in Russian Federation is the ruble. Money emission is carried out exclusively by the Bank of Russia. The introduction and issue of other money in the Russian Federation is not allowed.