What Is Finance

The word "finance" is translated from the Latin financia as income payment. Finance can not exist without the subject of financial relations between the major settlements are in cash form. Therefore, although the economic content of Finance are money, under the finance should be understood primarily economic monetary settlements. In the academic discipline of "Finance" shows the basic rules of the financial relations of all subjects of social activity, consider methods of practical application of finance, examines ways to influence Finance on economic and social development of society economic actors are legal and natural person who is bearer of rights and duties. The interaction of economic actors constitutes a market that sets in motion all sorts of means and of which there are financial flows and financial assets, and in this movement are embodied financial relationships. The course "Finance" addresses specific forms of finance in various spheres of public activity, the functioning of the basics of finance. The subject of study Finance is a certain portion of cash flow in society, namely the relations which arise in the process of formation and use of cash income and savings, education on the basis of financial funds in intended purpose.

Funds of funds generated at the state level, local governments are centralized funds and cash funds generated at the level of economic entities households – decentralized. Revenues from various types of economic entities formed special funds of funds. Formation of these funds is strictly regulated in nature, and this is another hallmark of financial relations. The distribution of the gross national product is involved and people getting their share of wages in the form of business profits, dividends and other forms of redistribution. Furthermore, the population is involved in the formation of the centralized funds of funds through taxes, other charges of mandatory. This is the kind of money relations associated with the formation and distribution of income and expenditure, as a sphere of financial relations. the role of the organization of financial relations, the state always has special powers in their realization of their economic peers in the first place, with enterprises (holdings) and the population.

As a result, these economic actors of financial relations have different rights, ie are . Manifestation of this unequal, ie economic relations is the fact that organized businesses or people engaged in manufacturing, value added is distributed in the the state. Public finance is characterized by three main features of which operate only in the aggregate: – the relationship is always money – monetary relations have always been caused by the fact that there are state and regimented nature – monetary relations connected with redistribution (at the level of economic agents) of gross domestic product. If you are available all three features, then these relations are precisely public finances. In a society with the natural economies redistributive processes were primarily a factor of positive taxes and various personal services. The development of commodity-money relations led to a change in the form of redistribution relationship – they were worn primarily monetary in nature. But the essence of these relations especially not changed. "Finance" as a concept in its modern presentation can be attributed to phase separation of the state treasury, education, the state budget. Regular flow of funds into the budget can not be achieved without giving taxes, fees and other payments public enforcement, which reached the legal activities of the state, the establishment of appropriate fiscal unit.

| November 5th, 2017 | Posted in General |

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