The reasons that give rise to the need for finance in the conditions of commodity production.

CONTENT

INTRODUCTION …………………………………………………………………………… 2

1. Economic content of finance ………………………… 4

1.1 Reasons that give rise to the need for finance in the conditions of commodity production…………………………………………………………………………… 4

1.2 Types of financial relations, their grouping……………………………… 6

1.3 Factors that determine the development of the financial system and scientific ideas about it………………………………………………………………….. 8

2. Spheres and links of the financial system of the RUSSIAN FEDERATION ……………………………………………………………………….. 13

2.1 Formation and development of the financial system of the Russian Federation…………………………. thirteen

2.2 Debatable issues of the composition and structure of the financial system in modern economic literature………………………………………. thirty

2.3 Relationship between the financial system and the financial market………………… … 33

CONCLUSION …………………………………………………………………… 35

REFERENCES …………………………………………………………… 37

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INTRODUCTION

Finance is one of the most important economic categories, reflecting economic relations in the process of creating and using funds. Their emergence took place in the context of the transition from a subsistence economy to a regular commodity-money exchange, and was closely connected with the development of the state and its needs for resources.

The primary sphere for the emergence of financial relations is the processes of primary distribution of the value of a social product, when this value breaks down into its constituent elements and various forms of cash income and savings are formed. Further redistribution of value between business entities and specification of its intended use also occurs on the basis of finance. Grouped according to a certain attribute, financial relations form the financial system. Financial relations, with all their diversity, can be combined into separate, relatively isolated groups – spheres and links. These spheres and links are closely interconnected. Each group of financial relations corresponds to monetary funds, and the relevant financial authorities manage these relations and funds.

Thus, the financial system is a combination of various spheres and links of financial relations, each of which is characterized by features in the formation and use of funds of funds, a different role in the life of society.

The object of this course work is the financial system of the Russian Federation, and the subject is financial relations that take shape during the period of market transformations.

The relevance and significance of this topic lies in the fact that the Government of the Russian Federation is interested in the economic development of the country, which is directly related to such a factor as the development of the financial system and financial relations in general.

The purpose of this course work is to identify new types of financial relations during the period of market transformations in Russia.

In accordance with the goal of the course work, the tasks are as follows:

reveal the economic content of finance;

determine the reasons that give rise to the need for finance in the conditions of commodity production;

consider the types of financial relations;

show the development of the financial system and scientific ideas about it;

analyze the spheres and links of the Russian financial system;

to study the formation and development of the financial system of the Russian Federation;

explore debatable issues of the composition and structure of the financial system in modern economic literature;

trace the relationship between the financial system and the financial market.

To achieve the goals set, the works of economists, scientists, economic literature of all periods of the development of society, analytical and critical articles, the history of the development of the financial system and the emergence of financial relations, as well as research articles in periodicals on Russia’s transition to a market economy were studied.

All this made it possible to consider in detail and fully the process of formation and development of the financial system in Russia, as well as the features of the development of the financial market and financial relations in Russia.

1. Economic content of finance

The reasons that give rise to the need for finance in the conditions of commodity production.

Finance is one of the most important economic categories, reflecting economic relations in the process of creating and using funds. Their emergence took place in the context of the transition from a subsistence economy to a regular commodity-money exchange, and was closely connected with the development of the state and its needs for resources. Finances are economic monetary relations associated with the formation, distribution and use of funds of funds in order to ensure conditions for expanded reproduction and the fulfillment of the functions and tasks of the state.

The term “finance” comes from the Latin word finansia, meaning income, payment in a transaction. It first appeared in the trading cities of Italy in the XIII-XV centuries. Later, having received international recognition, the term began to denote a system of monetary relations. The current meaning of the term “finance” appeared in the conditions of regular commodity-money relations in connection with the development of the state and its needs for resources.

Finance as an economic category expresses economic relations regarding the production, distribution and use of gross domestic product (GDP), that is, the cost of final goods and services produced by residents of a given country in its territory over a certain period of time, and national income (ND) – newly created the value or value of GDP minus the tools and means of production consumed in the production process, in connection with the formation of cash income, income and savings from business entities and the state, and their use for expanded reproduction, material incentives for workers, satisfaction of social and other needs of society.

Finance has the following features: they are closely related to the production process, directly related to commodity-money relations and the state, it is a cost (monetary) category, they distribute (at the stage of microeconomics) and redistribute (at the stage of macroeconomics) GDP and ND, find expression in real monetary funds, the totality of which constitutes financial resources.

Finances are an integral part of monetary relations; they arise on the basis of the movement of real money in cash and non-cash form. Money is a special commodity that can measure the cost of any goods or services.

The prerequisites for the appearance of money were the transition from a subsistence economy to the production and exchange of goods and the emergence of property independence of economic entities – owners producing marketable products.

The subsistence economy produced a product, not a commodity, a product for its own consumption; only an accidentally remaining surplus was exchanged. The change in the natural form of economic management gave rise to a new need – the need for a means of exchange, the circulation of many goods. And with the development of commodity production, not only the commodities themselves changed as a result of this production, but of any one product, so that in order to satisfy social needs, the purchase and sale of products on the market is necessary.

Commodity production should be understood as such an organization of the social economy when products are produced by individual producers, each of them specializing in the production of one particular product, so that the purchase and sale of products on the market is necessary to satisfy social needs. Money as a historical category develops at every stage of commodity production. In the distant past, the predecessors of money were certain types of goods used in exchange as equivalents, for example, furs, livestock, jewelry, and even tobacco. Later, when the exchange took on a systematic character, metals began to be used as money, first copper, then silver and gold, then paper money appeared. The process of initial accumulation of capital began. A new commodity appeared on the market – labor power. And the process of separating the producer from the means of production began. This was facilitated by the active economic role of the state.

Thus, the emergence of finance is due to such factors as the social division of labor and the division of society into social groups, the development of commodity-money relations in connection with the growth of production and the increase in GDP and ND, the emergence of independent, independent business entities that carry out entrepreneurial activities and create the necessary funds, the creation of a centralized state.

In this regard, the existence of commodity production is impossible without financial relations.

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