The essence and functions of Finance.

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2020-07-03 03:17:08

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The Concept of "Finance" is often equated with money. But that does not synonymous. Finances reflect any monetary relations that occur between two specific actors, I mean that money is the material basis for the functioning and existence of Finance. In addition, these actors have different rights within the framework of these relations, as one of them, namely the state, has very special powers.

Finance decided to allocate the totality of monetary relations in General. So, those monetary relations that occur between citizens can be attributed to Finance. Because they are regulated by the government, by civil law methods, which is characterized by full equality of actors within these relations. 

Finances are an important part of monetary relations. The essence and functions of Finance are markedly different from money. Money - not that other, as the universal tool for measuring the cost of labor. But finances are economically necessary tool of redistribution and distribution of national income and GDP. They are just an instrument to control use and education in General funds.

The Essence and functions of business Finance concepts from each other can. After all the functions and is the essence of Finance. There are three functions of Finance: the first distribution, second control, third control.

The Economic essence and functions of Finance - concepts, which play an important role in the distribution of national income. Here we will talk about the distribution functions of Finance. The amount of primary or main income is equal to national income. When national income is distributed among all participants specific material production and formed the basic tools. These participants can be divided into two large groups: the first - the wages of civil servants, workers, farmers ' income or other persons who are engaged in the sphere of material production; second, incomes of institutions, organizations and companies in this sector. But primary income, can not provide the tasks and functions of the state in full, and therefore need to reallocate and distribute national income. Resulting in formation of a manufacturing or secondary income. The essence and functions of Finance are interrelated and subject to the same goal. The distribution function is needed in order to develop the productive forces, to create the market structure of the economy, to ensure the highest standard of living of different segments of the population and so on.

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The Essence and functions of Finance need to understand in order to control the distribution of GDP. This task performs the control function of Finance. It covers non-production and production sector. Such control aims to significantly increase stimulus in the economy, the careful and rational use of human, material and financial resources. Financial control is essential to make sure that laws are observed on various financial issues of the extent of fulfilled obligations to tax authorities on fiscal system and the banks. 

The Essence and functions of Finance, it is impossible to imagine without regulatory functions. She is affiliated with, any government intervention through Finance (e.g. taxes, government spending or credit) in the production process. 

The Essence and functions of Finance are implemented solely through financial mechanism, which is part of the economic mechanism. As the financial mechanism includes many components: from the order of use of funds of funds, to financial legislation.


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DE: https://tostpost.com/de/business/40192-wesen-und-funktionen-der-finanzen.html

HI: https://tostpost.com/hi/business/24572-the-essence-and-functions-of-finance.html

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PL: https://tostpost.com/pl/biznes/42838-istota-i-funkcje-finans-w.html

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ZH: https://tostpost.com/zh/business/28073-the-essence-and-functions-of-finance.html






Alin Trodden - author of the article, editor
"Hi, I'm Alin Trodden. I write texts, read books, and look for impressions. And I'm not bad at telling you about it. I am always happy to participate in interesting projects."

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