Education, History
Money: origins and functions
Money, the origin of which is closely connected with the development of commodity relations and the formation of a value appraisal of products, are now an integral and significant part of the world economy. The history of their formation began many centuries ago, but even now we can observe their further development and transformation.
Money. Origin
- Rationalistic, more based on history.
- Evolutionary, researched from the scientific point of view, created and described in detail by Karl Marx.
According to the first, money appeared as a payment instrument as a result of an agreement between people. With their help it was much easier to exchange goods for different purposes.
Evolutionary theory runs counter to the rationalist theory and proves that the state and the people's conscious understanding did not have a proper influence on the origin of money. In short, the created product already has a price, which is formed on the basis of yesterday's demand criterion. Up to this point, any thing does not carry monetary functions.
Functions of payment means
The value of goods express money. The origin, essence and functions of their important to know. Tasks of payment means are reduced to the following items:
- Measure of value. The main function that confirms the value of money as a global value equivalent, which is expressed in the price of goods.
- Means of circulation. Responsible for the process of product movement in the market according to the scheme: commodity-money-commodity.
- Instrument of payment. Money is an intermediary in the case of the exchange of goods, because as a result of the transaction, the calculation is not always made in cash. Often, firms use borrowed funds or loans, as well as deferred payment. Funds paid after a certain period serve as the final stage of the transaction.
- Means of savings, investments and savings. Money, the origin of which is associated with commodity exchange, is a means for acquiring additional benefits and improving the quality of life. Therefore, many people are busy today with the multiplication of wealth.
- World money. They serve as an international means of payment and expression of public wealth. Previously this role was played by gold coins, but today also foreign currency, and the reserve share in the IMF, and special drawing rights.
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