What is finance?

Alexander Zolotovtsev
Alexander Zolotovtsev
March 21, 2013
What is finance?

Most people are often faced with such concepts as finance, but not everyone can give a specific and competent definition. So what is finance? Finance - a set of economic relations in the distribution, the formation and use of funds. Define what to do with finance:

  • government finance. These include the finances of state-owned enterprises, state institutions and organizations carried out non-commercial activities.
  • public associations. Parties, various unions, all kinds of funds.
  • private Finance private firms, commercial institutions, households.

Finance is a relationship arising in the process of moving money when it is transferred (transferred), both in cash and non-cash. However, finances are not associated with any form of movement. There are two forms - distribution and exchange. When distributing, only cash is transferred (later they can be returned), at the time when the exchange is to receive goods or services, or vice versa. Those.Finance covers only the area of ​​monetary relations that is associated with distribution and use.



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