Modification of money was reflected directly in the transition from the use of one of their types to another, as well as in the change regarding the conditions of their functioning. In the process of its development, money has come a long way, which began with real money and ended with signs of value, which serve as quality substitutes for the former. This article examined in detail types of money, features of their transformation, as well as other aspects of such a serious issue.
Money concept
Today, as before, money should be understood as a product of a specific nature, which plays the role of a universal equivalent in relation to the value of other goods and services. It is important to supplement that essence, types of money and their features appeared immediately after the mention of the Turkic concept of “tenge”.
Yes, of this moment there were barter deals, that is, a direct exchange of goods endowed with a cashless character. Money, as a special tool, arose in the process of transition from the subsistence type of economy to commodity production. It is interesting to add that types of money and their development features in some way correlated with their use in different countries of the world. Initially, various things were used instead of money. They served as commodity circulation tools and included such elements as animal skins, cattle, various kinds of furs, as well as pearls.
A little later, silver and gold began to be used as money. So, types of money and their features classified actually on bullion and coins. Gradually, they supplanted the remaining types of goods from circulation directly as money. The reason for this is the convenience of storing, connecting and crushing ingots and coins. Also similar types of money and their features endowed with relatively high cost, subject to light weight and volume. Of course, it was very convenient in the exchange process.
Independent circulation tool
In this way, types of money and their features, briefly saying, at that time they assumed some separation of the one-time procedure for the mutual exchange of goods in accordance with two processes carried out simultaneously. The first of them consisted in the sale of their goods. The second was to acquire the necessary goods at another time and in another place. That is why the listed types of money, features of their transformation led to the absolute independence of the corresponding process of their functioning.
As in the modern world, commodity producers could safely store the money received from the sale of their goods, right up to the time of purchase of the necessary products. It was from here that the practice of forming the first monetary accumulations set the initial point for its existence. It is important to note that one way or another they were later used to buy the necessary goods, pay off debts or lend money.
Means submitted types of money and their features, conditions transformations allowed this instrument of circulation to become independent and separate from the movement of marketable products. It is important to add that the functioning of funds later became even more independent. Why did it happen so? The fact is that over time, full-fledged money, which was somehow endowed with its own value, was replaced by banknotes. So first types of money and their features, briefly saying, they allowed the introduction of funds that did not have their own value. Of course, this justified the need to issue banknotes directly at the request of turnover. Moreover, this in no way depended on the degree of provision with their gold.
Functions of money, types of money and their features
To begin with, it should be noted that the category of money has a large number of varieties. So, each type of money is endowed with appropriate subspecies that combine their various forms. Types of money and their features in modern conditions differ both in the type of material, and in the methods of circulation, and in use, and in accounting for the money supply, and even if it is possible to turn some varieties into fundamentally different ones. However, in the historical aspect, it is customary to distinguish four types of money: commodity, fiat, secured and credit.
Initially, it will be advisable to consider commodity money in detail. It should be noted that they have different names: material, real, natural or real. Commodity cash is defined as products that in one way or another have independent utility and value. This category includes absolutely all types of goods that served as cash equivalents at the beginning of the development of commodity circulation. These include grain, animal furs, livestock, and so on. Money of metallic nature is also included in this grouping: coins of a full-weight nature of gold, silver, bronze or copper.
Fiat and secured money
As it turned out, types of money and their features in modern The conditions are famous for a wide variety. So, it will be of secondary importance to get acquainted with fiat money. In another way they are called symbolic, paper, fake or decorative. Fiat money is not endowed with independent value, and if it is endowed, it is completely disproportionate to the face value. An interesting feature of them is the absolute exclusion of value, but at the same time they have a real ability to play the role of money. Why? The fact is that fiat money is accepted by the state as taxes. In addition, they were once declared legal tender directly in relation to their territory. Today, non-cash funds that are in bank accounts, as well as paper banknotes, serve as the fundamental form of the considered money.
Secured money is otherwise referred to as exchange or representative. It is important to note that they can be exchanged only upon presentation for a specific amount of a product or commodity cash, for example, silver or gold. Thus, we can conclude that secured money in a sense serves as representatives of commodity cash.
Credit money
Types of money and their features in accordance with the classification in question, their final element contains credit money. They represent a certain right of claim in the future directly in relation to legal or natural persons of specially executed debt. It is important to add: as a rule, it appears in the form of a transferred security and is used to purchase goods or services, as well as to pay for its own obligations. It must be remembered that payment of the considered debt is made one way or another on a specific date.
Types of money and their features
In addition to the above classification, there is a division of money into full and inferior, non-cash and cash. So, full-fledged cash has a certain commodity value, allowing you to create their purchasing power.The latter, in turn, is adequate to the intrinsic value of funds, which is determined directly by the conditions of their reproduction. It must be added that full money is classified into metal and commodity.
Defective cash is not endowed with commodity value. It is important to note that they are divided into secured and unsecured, quartile and monetary surrogates. First of all, such an interesting classification depends on the fundamentals of legislation regarding the circulation of banknotes. Defective monetary funds, which are provided with foreign exchange metals or commodity products, are representatives of full-fledged money. In addition, they are endowed with representative value, although they do not have their own.
What is representative value? This is nothing but a measure directly related to purchasing power. As a rule, secured inferior funds immediately after an exchange for full ones have this. Since unsecured cash cannot be secured, it is not exchanged for foreign exchange metals or gold. In addition, they are considered money because of the corresponding trust on the part of economic entities and, of course, universal recognition. It is necessary to add that the type of inferior cash is hart money. Their appeal is endowed with legislative foundations, is officially supported by the state and is widely recognized in society.
Cash and non-cash money
Under cash should be understood as money that is directly in the hands of the population and primarily act as a tool for servicing retail turnover, as well as personal payment and settlement transactions. So, cash is metal and paper money transferred from hand to hand in kind.
Non-cash money is primarily the main money supply, which is stored directly in bank accounts. In another way they are called credit or deposit money by bank transfer.
Forms of money
Under the form of money should be understood the external expression (in other words, the embodiment) of one or another of their kind, which is differentiated in accordance with the functional performed. Today the following forms of cash are known: paper, metal, credit, banknote, bill, deposit, non-cash, checks and electronic. Many of them have already been mentioned above, so it will be advisable to consider some fundamentally new concepts.
Bill of exchange
A bill of exchange is the first type of credit money that arose as a result of trading on condition of installment payment. In the practical sense of the word, a bill must be considered as an unconditional written obligation on the part of the debtor to pay a certain amount of money in a previously agreed time period and in a predetermined place. It should be noted that distinguish between a simple and a bill of exchange. The first variety is issued by the debtor, the second is issued by the creditor and sent to the debtor for approval in the form of a signature with a return directly to the creditor. By the way, the second name of the last species from the presented - draft.
It is important to note that today Russian bill circulation is regulated by Federal Law number 48 (types of money and their features also include a bill) “On a bill of exchange and a promissory note”. It is also interesting to add that the category in question has specific features, among which:
- Abstractness (obligatory indication of the type of transaction).
- Indisputability (debt payment is mandatory; otherwise, the debtor is assigned enforcement measures).
- Circulation (it implies the possibility of offsetting obligations under the bill).
- Service exclusively wholesale.
- Involvement in the process only a certain circle of persons.
Checks
A check should be understood as a monetary document that contains the order of the account holder in a credit institution directly to pay a certain amount of money to the holder. Today it is customary to classify checks as follows:
- Personal checks are issued to a specific person subject to the exclusion of the right to transfer to third parties.
- Warrant checks are drawn up for a specific person, but are vested with the right to transfer to another subject by endorsement.
- Bearer checks, in accordance with which a specified amount of cash is paid directly to the bearer of this document.
- Settlement checks are used exclusively in the case of cashless payments.
- Accepted checks, according to which the banking organization gives an acceptance (in other words, consent) to make a payment transaction for a certain amount.
It should be noted that the essence of the check document lies in the fact that it is directly a tool for receiving cash at a banking institution. In addition, the check acts as a means of circulation and payment, and also serves as a non-cash payment instrument. Today, check documents are gradually replaced by electronic money and replaced by credit cards, which, of course, favorably affects almost all aspects of public life.