Paper money, unlike commodity money and metal coins from precious metals are symbolic. The essence of money is most fully manifested by their functions:
means of circulation - involves implementation of monetary exchange at the time of transaction.
tender - ie that the purchase will be paid later
measure of value - ie a means to calculate
accumulation or storage of value
world's money - their ability to be used in international payments
The most common definition of money - money is the universal commodity exchange for each marketable product and service and suitable for calculations and payments.
Stands behind the word money many of their variety, these are: coin money and paper money, they make the money available.
The main mass of cash, however, is non-cash money, ie money in bank accounts. Significant place in the money circulation borrow cash checks. The future of money in their most modern form - electronic money, credit and debit cards etc.
Money supply - combination of purchasing and payment tools serving the economic turnover form of money. The structure of money laundering distinguish active, serving existing and non-cash turnover and passive money that could potentially be used for payments.
Roger is money to be structured by dividing the parts depending on their degree of likvisnost. Under Liquidity means the ability to quickly, easily and with minimal conversion losses of financial assets in cash as payment.
Monetary system - a form of organization of the circulation in the country secured by law.
Each country has its own monetary system and currency, which is a symbol of the state. Because that gives the sovereign right to print their own currency, this does not preclude the use of foreign currencies.
The issue of cash sredsva is determined by two interrelated indicators - money supply and money demand.
Key factors determining the demand for money:
price level
interest rates
real income
Putting into circulation of cash money features - kredistnata state policy under inflation placing additional money is objectively determined by the price increase.
If emissions exceed the scale of the needs of the economy of the currency leads to "overheating" economy and "excitation" of inflation, but it also can stimulate economic activity.
Inflation is the devaluation of the currency ie reducing its power.
When prices rise slowly creeping inflation have
over 10% galloping inflation
over 1000% hyper inflation
Inflationary situation is formed when government debt is offset by the central bank by issuing notes and commercial banks by increasing loans.
Inflation affects all strata of society, but mostly the interests of those who receive their income in a relatively constant size and creditors.
The level of inflation is determined by the prices of so-called consumer basket, which includes the group of the used goods.
Stagflation - State of the economy in which inflation is accompanied by a decline in production and increasing unemployment is determined stagflation.
Finance is a generalized concept of an economic category, which characterizes the nature of monetary processes and monetary relations in society.
Finance occur in three different planes:
As cash and cash equivalents used as a type of economic resources necessary for production and consumption. There are three main sources, which can lead to financial resources
newly disposable income
use of part of the national wealth
loan - ie attracting funds from external sources
Finance and related financing concept, understood as a process to provide the necessary funds. Finance occur and distribution relationships. Finance function through financial institutions, these are companies whose main business is buying, selling or holding financial assets.
Active - active in the market economy is a resource that provides the owner expected future profits.
Major financial institutions are:
First group - deposit institutions - are commercial banks, savings and loan banks and others.
Second group - contractual intermediaries - are insurance companies and pension funds
Third group - investment firms - these are mutual funds and financial companies
Fourth group - financial intermediaries, investment banks and brokerage houses
Financial markets are divided into two categories: money markets and capital markets
The money markets offered financial assets with maturity less than one year and the capital markets, greater than 1 year.
Bank Settlements
Payments are brokering deals between banks and customers and transactions between the banks themselves, related to transfer money to bank accounts and cash between retailers.
Payment transactions obusobyavat into two groups:
The first group comprises menitelnite transactions, promissory notes, endorsements, etc..
The abstract nature of their character stems from the fact that they do not require justification and content of transactions. they have established strict form that includes an exhaustive list details of the law.
The second group includes non-cash payments are virment or bank transfer, bank debit, debit, payment and credit checks. The abstract nature of these transactions obusnovyava the rule that the bank refuses payment You can not for reasons other than failure to comply with conditions vklshtcheni the contents of the letter of credit, bank guarantees or naretsdaneto.
When the debtor and creditor are two banks, payment shall be deemed completed at the time of certification of the current account of the bank lender, and the obligation of the account debtor to the bank with the central bank.
IN CASE of the interbank payment of two clients from the same bank, the payment process is completed with the credit lender the client. Payments between customers of two different banks ends the moment the credit at the creditor's bank. Completion of payment means that the amount of payment has become part of the account of the payee.
There are two main types of payment: cash and money in bank accounts ie.
The basic rule of non-cash payments is that they can be made only nrarezhdane holder or with his consent to the size and conditions set by it. The Bank is not interested in the basic agreement between the parties, it is required only to verify the formal part of the regularity of the payment documents.
Second rule - any payment can be made only to the amount of funds in the account. Exceptions are made only in CASE an agreed overdraft. Bank has established and regulated so-called (BISERA) all banks must participate in it. Documents for payments must be processed within the working day in which they are received at the bank, the payments are made through BISERA spot in peryod (3 days) after receipt of the payment document. In late delay bank pays interest during the delay.
Bank Transfer - virment
Wire transfer is a transaction in which the principal provides the bank with a sum of money to pay nareydaneto of that person. Originator has the right to refuse payment ie it reversed and download an order only to the point that his account was debited.
The originator's bank and the originator may agree to a transfer order is revoked or neotmenyano, but it has no power to the beneficiary's bank, unless it has undertaken a similar obligation to the bank of the originator.
Reversal differs from revocation action as follows:
Reverse action on the bank, and the repeal of the originator. Reversal is strictly identified from premises and will be determined by the bank. Reversal is carried out after completion of the action, while the translation can only be repealed until it is executed.
The Bank may reverse the payment in three instances: when false entries in the overcharged amounts and illegality.
Funds provided by the originator may be of different origin - own credit, budget and TNT. The main requirement for them to be liquid and amounts they are available in the current account of the originator.
Bank debit is the payment transaction between the payer and the recipient, in which the payer agrees the bank, which leads to his account, for which the recipient is notified.
Payment request may be withdrawn only until the debit.
Fulfillment of the obligation under the payment request should be made within the same day, while only payment within the prescribed spot peryod.
If the payer does not have the requested amount payment request relates in arrears and is paid in full when the bill to raise the necessary funds.
There is a difference between the bank and cash collection contract for the documentary collection, documentary collections in the bank undertakes on behalf of the payer reward to forward documents to another person, giving the right to dispose of a claim.
Clearing bank
Clearing as a concept and operation means for mutual netting of claims and liabilities of banks. The term means clearing nasreshnite equalize obligations between two or more parties.
Clearing bank is only possible for participants BISERA.
Payment by credit
Letter of credit is one of the main forms of cashless payment through bank.
Seller may satisfy its rights to receive the agreed amount, if present at the bank said in akrditiva documents.
For its part, ie the ordering is also guaranteed buyer because the bank is required to accurately establish the correlation between the condition of credit and the documents without any concern for the concrete implementation of the commercial contract.
In the letter of credit shall include the type of product, time for payment, the amount of money and other payment documents.
In the letter of credit method of payment travel documents are the most important conditions for such payment. Because they verify the existence of the goods and it is transmitted to the carrier for transportation to the buyer.
Payment by check
Cheque unlike bills of exchange and promissory notes shall not give rise to short-term lending between each issuer and creditor. As it is not expected outstanding claims and the immediate and unconditional payment. It is a document that ranks the bank to pay for bringing a certain amount of time saved in check.