Real (full) money, their properties and types. Full money and their forms

Money is a specific commodity that is the universal equivalent of the value of other goods or services. According to the most popular version, Russian word"money" comes from the Turkic "tenge".

Before the advent of money, there was barter - a direct cashless exchange of goods. Money arose during the transition from subsistence farming to the production of goods. In different regions of the world, various things (commodity money) were used as money: cattle, furs, animal skins, pearls. Later, gold and silver began to be used as money, first in the form of ingots, and then in the form of coins.

Gradually, gold and silver coins forced the rest of the goods out of circulation as money. This is due to the convenience of their storage, crushing and connection, the relative high cost with a small weight and volume, which is very convenient for exchange.

Thanks to the use of money, it became possible to divide the one-time process of the mutual exchange of goods into two processes carried out at different times: the first consists in the sale of one's goods, and the second in the acquisition of the desired goods at another time and in another place.

The functioning of money acquires features of an independent process. Commodity producers can keep the money received from the sale of their goods until the purchase of the desired goods. Hence, money savings arose that could be used both for the purchase of goods and for lending money and paying off debts.

As a result of such processes, the movement of money acquired an independent significance, separated from the movement of goods. The functioning of money received even greater independence in connection with the replacement of full-fledged money with its own value, banknotes, as well as with the subsequent abolition of the fixed gold content of the monetary unit. At the same time, money that does not have its own value began to function in circulation, which made it possible to issue banknotes in accordance with the need for turnover, regardless of the presence of gold backing.

TYPES OF MONEY

Money has many varieties. In each type of money there are subspecies that combine their diverse forms. They differ in the type of monetary material, and in the ways of circulation, and in the use and accounting for the money supply, and in the possibilities of converting one type into another. But historically, there are four main types of money: commodity, secured, fiat and credit.

commodity money(natural, real, real, real) are products that have independent value and utility. They include all types of goods that acted as equivalents at the initial stages of the development of commodity circulation (cattle, grain, furs, etc.), as well as metal money - copper, bronze, silver, gold full-weight coins.

secured money(bargain, representative) can be exchanged at sight for a fixed amount of a certain product or commodity money, such as gold or silver. In fact, secured money is a representative of commodity money.

fiat money(symbolic, paper, decreed, fake) do not have independent value or it is disproportionate to the face value. They have no value, but are capable of performing the functions of money, since the state accepts them as payment of taxes, and also declares them legal tender in its territory. Today, the main form of fiat money is banknotes and non-cash money held in a bank account.

loan money- these are the rights to demand in the future in relation to individuals or legal entities a specially designed debt, usually in the form of a transferable security, which can be used to purchase goods (services) or pay off one's own debts. Payments for such debts are usually made within a certain period of time.

There are also such types of money as full and defective; cash and non-cash.

Full money have a commodity value that allows them to shape their purchasing power. Purchasing power, in turn, is adequate to the intrinsic value of money, determined by the conditions of their reproduction. Full money is divided into commodity and metal.

Defective money do not have a commodity value and may be secured or unsecured; charter and monetary surrogates (depending on the legal basis for the circulation of banknotes). Inferior money, backed by commodities or currency metals, is considered to be representative of valuable money and, having no value of its own, has a representative value. Representative value is a measure of the purchasing value possessed by defective secured money as a result of exchange for full-fledged money. Since unsecured money has no collateral, it is not exchanged for gold or currency metals and is money due to the universal recognition and trust in them by business entities.

Hartal - types of defective money, the circulation of which has a legislative basis, is recognized and supported by the state.

Cash- these are those that are in the hands of the population and serve retail trade, as well as personal payment and settlement transactions. Thus, cash is metal and paper money that is transferred from hand to hand in kind.

non-cash money- This is the bulk of the money in bank accounts. They are also called deposit or cashless credit money.

The form of money is called the external expression (embodiment) of a certain type of money, differentiated by the functions performed. There are the following forms of money: metal, paper, credit, bill, banknote, deposit, checks, non-cash, electronic.

METAL MONEY

From the many types of commodity money, precious metals emerged and gradually became the universal form of money. They did not deteriorate over time and were easily divided into parts. These metals had both a high cost and a relatively wide distribution (they are found in almost all regions of the planet, but in low concentrations).

Around the end of the 7th century BC. e. in Lydia (Asia Minor), coins were invented - round ingots of precious metals, whose standards were guaranteed by state coinage. The coins quickly became universal remedy exchange for most civilizations of the Old World. Since gold and silver coins had their own value, they could be used in all countries where metal money was in use. However, each state sought to mint its own coin, thus demonstrating its sovereignty.

Metal money is real money, i.e. they have a nominal value corresponding to the real value or the value of the metal from which they are made.

PAPER MONEY

Historically, paper money appeared as a substitute for gold coins in circulation. At the initial stage, they were issued by the state along with gold coins and exchanged for them in order to introduce them. Peculiarity paper money consists in the fact that they, being devoid of independent value, are supplied by the state with a forced course. Paper money performs only two functions, being a medium of circulation and a means of payment. The state, constantly experiencing a shortage of financial resources, as a rule, increases the issue of paper money without taking into account commodity circulation and payment turnover. The absence of a gold exchange makes them unsuitable for fulfilling the function of a treasure, and their surplus cannot itself go out of circulation.

LOAN MONEY

Credit money arises with the development of commodity production, when the purchase and sale is carried out with an installment payment (on credit). Their appearance is associated with the function of money as a means of payment, where they act as an obligation that must be repaid on time.

A feature of credit money is that their release into circulation is linked to the actual needs of turnover. The loan is issued against security, which are certain types of stocks, and the repayment of loans occurs when the balance of values ​​decreases. Thanks to this, the volume of means of payment provided to borrowers can be linked with the actual need for turnover in money.

Credit money does not have its own value, it is a symbolic expression of the value contained in the equivalent commodity. Their release into circulation is usually carried out by banks when performing credit operations. Credit money has gone through the following development path: bill, accepted bill, banknote, check, electronic money, credit cards.

bill of exchange

A bill of exchange is the first type of credit money that arose as a result of trade with installment payment. A bill of exchange is a written unconditional obligation of the debtor to pay a certain amount at a predetermined date and place. Distinguish between a promissory note issued by the debtor and a transfer (draft) issued by the creditor and sent to the debtor for signature with a return to the creditor.

At present, there are also treasury bills that are issued by the state to cover the budget deficit and cash gap, friendly bills issued by one person to another in order to account for them in the bank, bronze bills that do not have a commodity coverage. The payment guarantee of a bill increases with acceptance (consent) by the bank - this is an accepted bill.

The features of the bill are:
abstractness - the type of transaction is not indicated on the bill;
indisputability - obligatory payment of a debt up to the adoption of coercive measures after drawing up an act of protest;
negotiability - the transfer of a bill as a means of payment to other persons with an endorsement on its back (giro or endorsement), which creates the possibility of mutual offset of bill obligations;
the bill serves only wholesale trade, in which the balance of mutual claims is repaid in cash;
a limited circle of persons is involved in the circulation of bills.

banknote

Banknote - credit money issued by the central (issuing) bank of the country. Initially, the banknote had a double security: a commercial guarantee, since it was issued on the basis of commercial bills of exchange related to trade, and a gold guarantee, which ensured its exchange for gold. Such banknotes were called classical, had high stability and reliability.

A banknote differs from a bill of exchange:
1. In terms of urgency - a bill is an urgent debt obligation (3-6 months), a banknote is a perpetual debt obligation.
2. By guarantee - a bill of exchange is issued by an individual entrepreneur and has an individual guarantee, a banknote is issued by the central bank and has a state guarantee.

A classic banknote (that is, a change for metal) differs from paper money:
1. By origin - paper money arose from the function of money as a means of circulation, banknote - from the function of money as a means of payment.
2. According to the emission method - paper money is put into circulation by the Ministry of Finance, banknotes - by the Central Bank.
3. By repayment - classical banknotes after the expiration of the bill under which they are issued are returned to the central bank, paper money is not returned.
4. By change - the classic banknote, upon returning to the bank, was exchanged for gold or silver, paper money was always fiat money.

At present, the banknote enters circulation through bank lending to the state, bank lending to the economy through commercial banks, and the exchange of foreign currency for banknotes of a given country.

Modern banknotes are not redeemable for gold and are not always backed by goods. Currently, the central banks of countries issue banknotes of a strictly defined denomination. In essence, they are national money throughout the state.

Deposit money

These are numeric entries in customer bank accounts. They appear when the owners present the merry to its account in the bank. The bank, instead of paying in banknotes for a bill of exchange, opens an account from which payment is made by debiting them.

Deposit money is able to perform a cumulative function due to the interest received when transferring funds for temporary use to a bank. They serve as a measure of value, but cannot serve as a medium of exchange.

A deposit, like a bill, has a dual nature. On the one hand, it is money capital, and on the other hand, a means of payment. The resolution of the contradiction of the deposit between the function of capital (savings) and the payment function was carried out due to the division of the deposit into a current account and a savings, term deposit.

Checks

A check is a monetary document containing an order from the account holder in a credit institution to pay the specified amount to the holder of the check. There are the following types of checks;
1. Nominal - issued to a specific person without the right to transfer.
2. Order - drawn up for a specific person, but with the right to transfer to another person by endorsement.
3. Bearer - for which the indicated amount is paid to the bearer of the check.
4. Settlement - used only for non-cash payments.
5. Accepted - for which the bank gives acceptance, or consent to make a payment of a certain amount.

The essence of a check is that it serves as a means of obtaining cash in a bank, acts as a means of circulation and payment, and is also a tool for non-cash payments.

non-cash money

In developed countries with a market economy, most of the means of circulation account for non-cash money. Non-cash money - entries in accounts with the central bank and its branches, as well as deposits in commercial banks.

Non-cash money is essentially not a means of payment, but at any moment they can turn into cash guaranteed by credit institutions. In practice, they act on a par with cash and even have some advantages over them.

Electronic money

The end of the 20th century was marked by the transition to a new type of money - "electronic". This became possible thanks to the mass production of computers, which made it possible to switch to electronic payment transfers.

Electronic money is broadly defined as the electronic storage of monetary value using a technical device that can be widely used to make payments in favor of not only the issuer, but also other firms, which does not require the mandatory use of bank accounts for transactions, but acts as a prepaid instrument. to the bearer.

Electronic money is the monetary obligations of the issuer in in electronic format, which are on electronic media at the disposal of the user.

Electronic money is based on the usual deposit circulation, based on the initial deposit by the person making the payment of a certain amount of credit money.

It is also necessary to distinguish between electronic fiat money and electronic non-fiat money. Fiat is necessarily expressed in one of the state currencies and is a kind of monetary unit of the payment system of one of the states. The state by law obliges all citizens to accept fiat money for payment. Non-fiat - are electronic units of value of non-state payment systems. Accordingly, the emission, circulation and redemption (exchange for fiat money) of electronic non-fiat money occur according to the rules of non-state payment systems.

Electronic money is gradually replacing checks and replacing them with credit cards - a means of payment that replaces cash, as well as a means of obtaining short-term loans from banks.

FUNCTIONS OF MONEY

The essence of money economic category manifests itself in their functions, which express the internal basis of the content of money. The unity of functions creates an idea of ​​money as a special, specific commodity that participates as a necessary element in the reproduction process of society. Money can perform its functions only with the participation of people. It is people who, using the possibilities of money, can determine the prices of goods, use them as accumulation. In a developed commodity economy, money performs the following functions: measures of value, means of circulation, means of payment, means of accumulation and world money.

The function of the measure of value is to estimate the cost of goods and services. The value of a commodity expressed in money is called its price. In the market, prices can deviate up or down from value (depending on the balance of supply and demand). Money is also used when recording the value of an economic parameter or recording a liability.

The function of money as a means of circulation is used as an intermediary in the acts of buying and selling goods. For this function, the ease and speed with which money can be exchanged for any other commodity (an indicator of liquidity) is extremely important.

The function of money as a means of payment appeared in connection with the development of credit relations, that is, with the possibility of deferred payment. This function is performed by money in the provision and repayment of cash loans, in monetary relations with financial authorities, as well as in the repayment of wage arrears, etc.

The function of a store of value is performed by money that is not directly involved in circulation. Money as a means of accumulation allows you to transfer purchasing power from the present to the future. However, it should be borne in mind that the purchasing power of money depends on inflation. So that money does not depreciate, their accumulation in the form of gold, foreign currency, real estate, and securities is widely practiced.

The function of world money is manifested in the relationship between economic entities: states, legal and individuals located in different countries. Until the 20th century, the role of world money was played by noble metals (primarily gold in the form of coins or ingots), sometimes precious stones. Nowadays, this role is usually played by some national currencies - the US dollar, the pound sterling, the euro and the yen, although economic entities may use other currencies in international transactions.

In the modern market economy, the functions of money have undergone modifications. Commodity-money relations have acquired a universal and global character. Thus, without exception, all goods, services, natural and intellectual resources, as well as the labor and abilities of people are valued today in monetary terms.

Subject: Good money. Reasons for the transition to defective

Subject: Money. Credit. Banks.

Introduction

The concept and types of full-fledged money

The origin and evolution of scientific and theoretical views on full-fledged money

The history of the development of full-fledged money and the reasons for the transition to defective money

Conclusion

Bibliography

Introduction

The complexity of money as an object of theoretical knowledge and a subject of study lies in the versatile nature of their system construction, which provides for a multi-level structure of approaches to determining the qualitative essence and functional properties of this economic phenomenon.

It is understood that in order to identify not formal, but real causal relationships that determine the nature and objective foundations of the self-development of monetary relations, it is necessary to distinguish them into logically separate structures and planes of analysis, within each of which specific tasks of the cognition process are considered. We are talking about the characterization of money, firstly, at the level of certainty of their essence, and above all, the division of money into categories of full-fledged and inferior ones.

The need for such a distinction is determined by the fact that in each of these planes the object of study is characterized by specific features that cannot be confused in any way. To determine the qualitative essence of money means to find out the causes and genetic basis of their origin, to identify signs that are stable, to know the internal structure and contradictions that determine the objective logic and laws of their self-development.

At the same time, considering the question posed, it is necessary to take into account the peculiarities of its specific historical development associated with the use of money in order to perform certain functions. After all, full-fledged money at the earliest stages of commodity production already concentrated in itself all the variety of functions of money circulation in the form of one monetary structure - gold as a monetary commodity.

1. The concept and types of full-fledged money

high-grade money paper gold standard

Full-fledged money is called money made from a commodity, that is, those that have the same intrinsic value in the sphere of circulation and conditions for the transition to a treasure. They adequately reflect the value of the commodity, because the exchange of the commodity takes place on the basis of equating the value of the monetary material with the equivalent value of the commodity. Commodity money became the ascendant form of valuable money.

Commodity money is able to act as a universal equivalent because social work has been spent on its production. They are equally capable of serving for direct consumption and for measuring the value of other goods and as an instrument of exchange. In different eras, the role of commodity money was performed by essentials:

livestock, and later luxury goods and/or decorations:

necklace,

fur, etc.

The subsequent epochs of growth in labor productivity and the expansion of commodity exchange and its territorial boundaries gave rise to new requirements for instruments of exchange. Such means of exchange were needed that would possess the homogeneity of the material, would retain their value for a long time, etc. That is why, out of the total number of exchanged values, metals were fixed in the role of a universal equivalent.

Metal money first appeared in the form of pieces of metal of various shapes and weights. Over time, they began to make products that could equally serve to meet the needs of consumption and act as a means of exchange. Only with time did a round coin appear - the most perfect form of full-fledged money.

The emergence of full-fledged money was the beginning of the use of a universal equivalent of value.

At the same time, in the process of development of commodity production, the essential characteristic of the category "value" as the basis of monetary relations, with the help of which money expresses its qualitative certainty, is filled with new content. As a relation of production, value is characterized by the property of historicism - that is, the ability to adapt to specific conditions of production and circulation of goods that are constantly changing and improving.

Regarding what, the characteristic of full-fledged money as a universal equivalent at each stage of historical development should be considered as a reflection of the specific essence of natural money, which is filled with new content within the various stages of commodity production and circulation and therefore is constantly enriched.

It is very important to keep in mind that valuable money is not only the direct embodiment of value, but also the social standard for measuring the latter, as a measure of its quantitative determination. The implementation in commodity circulation of the function of the standard of measurement of value, its degree is a monopoly of full-fledged money. The certainty of full-fledged money as a general value equivalent is largely based on the realization of this particular monopoly.

Considering full-fledged money as the personification of a common value equivalent, one should also take into account the fact that this concept only gives an abstract description of their essence. Full-fledged money in the named quality is not yet defined in the state of its immediate existence as an organic unity of content and form. At this stage, they are considered only as a result of the development of their deepest essence - value. Therefore, there is still no system of connections here that combines money with the entire structure of social reproduction, its constituent links. At this level, money is considered only as a production relation, taken outside of its specifically functional embodiment.

The considered questions characterizing the logical interrelation of the concepts "cost of goods" - "full-fledged money as a general cost equivalent" determine the general economic nature of full-fledged money. We are talking about the fact that the specified purpose of full-fledged money is manifested in their ability to ensure the isolation and realization of the value of the goods as a specific economic relationship between individual commodity producers and society as a whole.

However, the specified purpose of full-fledged money cannot be limited only to this function. In the process of real exchange, they ensure the realization of not only the value, but also the consumer value of the goods. In this regard, an important component of the features of full-fledged money is their ability to serve the technical side of the exchange - the movement of consumer values, as a technical tool for exchange.

This provision is evidence of the dual nature of full-fledged money, proof that their deep essence holds not one, but two forms, two lines of development: full-fledged money as an expression of social connection has one cycle of development, full-fledged money as an instrument for the movement of consumer values ​​- another cycle. Such a structure of full-fledged money reflects the duality of the process of commodity exchange, which includes a high assessment of the value of the commodity, its preliminary conversion into a monetary shell, the ideal metamorphosis of the commodity into money. The same process provides for the direct exchange of goods for money and then - the latter for another product. In this case, we are talking about the mechanical transfer from one hand to another of consumer values, which even before that, on the basis of the implementation of the function of full-fledged money as a general value equivalent, received a high assessment necessary for real exchange.

However, these definitions are not completely opposite. The independence of the lines of development of monetary relations in question is relative. Reflecting the dual structure of the commodity and, accordingly, its exchange, these lines realize themselves within the limits of a single monetary essence. Full-fledged money as an expression of social quality and money as a purely technical instrument of exchange can only in their unity ensure a real exchange of goods. Hence, their differentiation is permissible only within the framework of theoretical knowledge. At the same time, the aforementioned delimitation of the logical lines of development of monetary relations carries a very important methodological burden in theoretical terms.

The methodological significance of the theoretical argumentation of the structure of monetary relations is determined by the fact that on this basis it becomes possible to qualitatively characterize the structural construction of concrete historical forms of money, the specificity of which is expressed by an appropriate combination of monetary functions. We are talking about identifying in each specific historical system of monetary relations the structural elements with the help of which the technical side of commodity exchange is served, the movement of consumer values ​​and elements are carried out, on the basis of which the social nature of full-fledged money is expressed, their role as a common cost equivalent.

2. The origin and evolution of scientific and theoretical views on full-fledged money

For the first time, a theoretical justification for the structure of full-fledged money was introduced within the framework of the mercantilist theory of money (approximately 16-17 centuries), according to which the source of wealth for society is foreign trade, the surplus of which ensures the flow of precious metals to the treasury. This is reflected in the policies of many states. For example, in England, the export of gold and silver from the country was prohibited, and therefore, for foreigners, the sale of goods on the domestic market was associated with a ban on the export of money received from trade and the acquisition of English goods. True, later it was allowed to export gold, but with such a condition that the amount imported should be more than exported - the policy of protectionism.

The main blow to the theory of the mercantilists was inflicted as a result of the development of industry.

The French philosopher Jean Bodin was the first to suggest that the price level depends on the amount of gold. In his treatise (1658), he analyzed the reasons for the sharp rise in prices in the countries of Western Europe and saw the main reason in a large amount of gold.

Thus, the quantitative theory was actually born - its founders explained the influence of money on economic processes exclusively by quantitative factors, primarily by changing the mass of money in circulation. The defining feature of the quantity theory is the proposition that the value of money and the level of commodity prices are determined by changes in the quantity of money: the more money there is in circulation, the higher the prices and the lower the value of money, and vice versa. Influencing the prices of goods and services, the amount of money also affects all other economic processes: the growth of the nominal volume of GDP, national income, effective demand, etc.

They countered to the mercantilists that the accumulation of gold and silver could not make a nation richer, because the result of such accumulation would be the depreciation of precious metals and the rise in commodity prices. In their opinion, the real wealth of the nation is associated not with the dead reserves of gold and silver, but with the creation of manufactories, the use of living labor in them.

Representatives of classical political economy paid attention only to the intermediary role of money, their performance only as a means of circulation. Therefore, they believed that money is a commodity that is practically no different from all other goods. We are talking about ignoring one of the defining functions of money - their purpose to fulfill the mission of the general value equivalent in commodity circulation.

D. Ricardo argued that if a gold deposit were discovered in any of the countries, then its means of circulation would decrease in value. This would happen because the amount of precious metal in circulation would increase. If, instead of discovering a deposit of gold, a bank like the English one were founded in the country, then the issue of a large number of notes by it would lead to the same result as the discovery of a gold deposit. D. Ricardo also explained the mechanism of pricing from the point of view of the quantitative theory: in circulation, the mass of goods simply collides with the mass of money, as a result of which prices are set. If there is more money in circulation, then prices will be higher, if less - lower.

A significant place in the works of A. Smith is occupied by the question of the spontaneous origin of money: the development of money is associated with the historical process of the social division of labor and the socialization of production. According to this, Smith adhered to the concept that the progress of monetary relations is determined by the operation of objective economic laws. The monetary policy of the state should reflect the requirements of these laws, create a mechanism for their implementation.

Smith and Ricardo recognized the commodity origin of money. Money is a commodity that is no different from other commodities.

However, it was these scientists who summed up the scientific justification for the termination of the circulation of full-fledged money. Thus, Ricardo pointed out that an essential condition for the growth of national wealth is the stability of money circulation. Achieving this condition is possible only on the basis of the gold standard. But this does not mean the obligatory circulation of gold money. In order to reduce unproductive expenditures, they should be replaced by paper money, which was considered as representatives of a monetary commodity, signs of its value. This position of Smith and Ricardo is based on the labor theory of value, so the value of money is determined by the amount of human labor that is embodied in this product.

3. The history of the development of full-fledged money and the reasons for the transition to defective money

The development of commodity production and the strengthening of economic relations in society led to the formation of regional and then national markets. These objective processes required the streamlining of monetary circulation in order to create a flexible system that would contribute to the development of commodity-money relations. The creation of such a system provided the state with objectively formed elements of monetary circulation and their interaction.

At first, these were monetary systems that were based on a common equivalent, which was of a commodity nature.

Already from the very beginning of its inception, in the conditions of the slave system, monetary systems were represented by full and defective money, and the legal support for their functioning was reduced to the regulation of the process of minting coins and the fight against counterfeiters.

At first, various metals and products made from them were used as money: iron, copper, bronze, etc. Subsequently, the natural properties of gold and silver (high specific gravity of the cost of a weight unit, limited distribution in nature, the ability to long time preserve physical properties, easily change appearance, portability, etc.) these metals were singled out as money.

Since in this period money acts in the form of a commodity, this type of monetary system is called metallic. A metallic monetary system is a system based on full-fledged metallic money. In such a system, banknotes subsequently appeared, which were exchanged for gold, and paper money, but precious metals remained the determining element.

During the existence of metal systems, already in the Middle Ages, monetary systems represent a rather complex form of organization of money circulation, which includes the following elements:

Full money;

Defective money;

Banknotes;

Treasury notes.

Gold, already in ancient times, came into circulation in the form of coins. In this sense, the minting of coins was considered an important moment in the organization of money circulation; from the very beginning, it was carried out under the supervision of the state. Since full-fledged money was a commodity and, moreover, quite rare, the state was interested in its constant increase. As a result, in relation to full-fledged money, there was a right of free coinage.

This right boiled down to the fact that everyone who had gold or silver in bullion, and during the time of the gold coin standard system - only gold, had the opportunity to freely mint the corresponding number of coins from it. The interest of the state in increasing the amount of valuable money in circulation was manifested in the fact that the state either completely assumed the costs associated with minting coins, or was limited to a symbolic payment. In Russia, for example, this fee was 0.2% of the cost of a metal ingot.

Full-fledged money was constantly in circulation and therefore wore out. This made their handling expensive and forced them to resort to measures that would counteract wear. The most common means of combating this phenomenon in many countries has become the addition of a more wear-resistant metal to the monetary metal. This admixture was called a ligature, and the amount of monetary metal (gold or silver) in a coin was called a sample.

The weight ratio between pure monetary metal and an admixture of other metals was established by the state and expressed in thousandths or according to the carat system. Most countries used the thousandths system. According to this system, mint gold, for example, 900 fineness, was a coin, where 900 weight parts of pure gold accounted for 100 parts of impurities. With the carat system, pure precious metal corresponded to 24 carats, and therefore, if there were 12 carats in a coin, this meant that it contained half of the pure precious metal, and half of the impurities.

The presence of a ligature reduced the rate of wear of coins, but could not eliminate its cause. Therefore, a coin in the process of long-term use could lose some of its weight and through this its value was less than that indicated in its face value. In order to streamline the turnover, taking into account this moment, the state set a wear limit, beyond which the coin ceased to be obligatory for acceptance. This limit was different in different countries, but, as a rule, it was set within 1% of the weight of the coin.

In the process of historical development, two main types of metallic money systems can be distinguished:

a) bimetallic - these are systems in which the role of the universal equivalent is played by two monetary metals: gold and silver;

b) monometallic - these are monetary systems in which the role of the universal equivalent is assigned to one metal: gold or silver.

At the same time, already from the early Middle Ages and almost until the middle of the XIX century. bimetallic systems prevailed, although in some countries silver monometallism also took place in certain periods. For example, it existed in Russia from 1843 to 1852.

The presence of two monetary metals, which differed significantly in their value, led to the existence of two prices for commodities: in gold and silver. This was due to the fact that each of these metals played the role of a universal equivalent, and, consequently, the function of a measure of value. In turn, two prices for the same product created some awkwardness in the process of exchange. However, a deep and truly objective drawback of the bimetallic system turned out to be that the law of value was constantly violated in such a system. This was due to the fact that the conditions for the extraction of gold and silver were constantly changing, and this led to a change in the value of these metals. It was almost impossible to catch this change and constantly display it in the ratio of prices that was fixed by the state in gold and silver.

With the development of commodity production, this contradiction, objectively inherent in the bimetallic monetary system, began to slow down commodity exchange and eventually led to its replacement by a monometallic monetary system. In the second half of the XIX century. countries began to move to a monometallic monetary system.

One of the first states that switched to gold monometallism was England.

Only gold was recognized as a single monetary metal. Silver coins passed into the category of defective. After that, namely in 1867, by an interstate agreement that was concluded in Paris by several countries, gold was recognized as the only form of world money. This system was called the Paris Monetary System. Russia switched to gold monometallism after the monetary reform of 1895-1897.

The transition was a rather revolutionary phenomenon and ran into the inertial resistance of individual countries. An example of this is the creation in 1865 of the Latin Monetary Union, which included such countries as France, Italy, Belgium and Switzerland. Later they were joined by Greece and Romania. These countries, in order to support sustainable monetary circulation based on bimetallism, unified the rules for minting gold and silver coins. They agreed on the introduction of a common monetary unit - franco, pledged to mint gold and silver coins of the same weight and fineness, and established a single ratio of gold and silver.

Gold monometallism led to the formation of a monetary system called the gold standard. Its main features can be summarized as follows:

gold circulates freely, and gold coins perform all the functions of money;

defective money was freely and unlimitedly exchanged for gold;

export and import of gold from one country to another was free.

The transition to the gold standard provided high level stability of national currencies and created favorable conditions for the smooth functioning of gold as world money. All this contributed to the development of capitalist production, the formation and strengthening of its credit system, the development of international trade and international credit relations.

The origin of defective money is due to the fact that in the process of historical development such metals as silver, copper and bronze previously played the role of a universal equivalent for gold. Another reason that necessitated the existence of defective money was that it was technically very difficult to mint small coins from gold to service small payments. There was a need for a bargaining chip, which was satisfied by defective money.

Acting as a means of circulation and payment on a par with full-fledged money, inferior ones had their own value below their purchase value, which could lead to the displacement of full-fledged money from circulation. To prevent this from happening, the state often set a limit on the amount of payments that could only be made with defective money. So, for example, in Russia, silver coins with a face value of 25 kopecks. up to 1 rub. it was possible to pay for purchases worth up to 25 rubles, and with smaller silver and copper coins - purchases up to 3 rubles.

A striking historical example is the events in Russia during the reign of Tsar Alexei Mikhailovich (1645-1676). In 1656, the government of Tsar Alexei Mikhailovich put into circulation a silver ruble coin, which was half the weight of the previous silver ruble. And soon copper coins with a face value of 1 ruble were issued. They quickly replaced the previous silver ruble. The operation of minting copper money was very beneficial to the tsarist government. Buying a pound of copper (409.6 g) for 12 kopecks, it minted copper money from it for 10 rubles. and this money was calculated with merchants, warriors, and government officials. In total, defective money was issued for a huge amount for those times - 20 million rubles. This led to a crisis in monetary circulation and led to an uprising in 1662 by the population of Moscow, which was called the "copper riot". After the brutal suppression of the rebellion, the tsar was forced to abandon copper rubles, and they were withdrawn from circulation at one kopeck per ruble.

The gold standard lasted until the First World War, with the beginning of which in all warring countries (except the United States) the exchange of banknotes for gold was stopped and its export from the country was prohibited. Under the conditions of the war, countries began a wide issue of banknotes that could not be exchanged for gold. After the end of the First World War in the early 1920s, the gold standard was restored, but not in gold coin form, but in the form of gold bullion and gold trade standards. The gold bullion standard meant that the exchange of notes for gold was restored, but only in exchange for bullion. In other words, the possibility of such an exchange could be realized only when the amount of banknotes was sufficient to purchase a standard gold bar. So, in the UK it was a 12.4 kg ingot worth 1,700 pounds, in France - 12.7 kg worth 215 thousand francs. The gold bullion standard was restored by countries that, for example, France and Great Britain, had significant gold reserves.

In countries where the state reserves of gold were relatively small (Germany, Denmark, Austria, etc.), the gold standard was restored in the form of a gold exchange. Its essence is that the national currency was not exchanged directly for gold. This exchange was indirect and passed through a preliminary exchange of money for mottos, that is, for the currency of the country in which the gold bullion standard took place. The gold exchange standard was fixed by an international agreement in Genoa in 1922.

The restored gold standard did not last long, however. World economic crisis 1929-1933 (Great Depression) led to the abolition of the gold standard in most countries. In 1931 it was abolished by Great Britain and Japan, and the USA abandoned it in 1933. This process spread and meant the final collapse of the gold standard.

However, several countries, led by France, tried to maintain the gold standard and formed a gold bloc in 1933. It included: France, Belgium, the Netherlands, Switzerland, and then Italy and Poland joined them. However, this bloc did not last long and broke up in 1936, and its members were forced to introduce currency restrictions and refuse to exchange banknotes for gold.

The collapse of the gold standard, the most stable monetary system that existed throughout the history of the world, was objective and meant the actual transition from the use of full-fledged money to the use of inferior ones.

main reason- the development of commodity production came into conflict with a very stable, but not elastic and expensive system of the gold standard. The fact is that gold mining could not develop at the same pace as social production developed.

Why at that stage economic development, which was characterized by high dynamism in increasing the volume of industrial and agricultural production, existing system monetary circulation has become a noticeable brake on the path of further progress in the development of commodity production. Of course, this contradiction existed long before the abolition of the gold standard. But before that, it was overcome by increasing gold mining and, which is especially important, by developing credit.

Important factors that played a role in the abandonment of the gold standard were also:

the high cost of maintaining this monetary system;

the growing need for gold on the part of production (especially in the context of an arms race);

the impossibility for the state under the gold standard to pursue its own independent monetary policy.

In modern conditions, defective money also exists in the form of coins, which are made of copper, silver, aluminum, nickel and other metals and their alloys.

An important element of the monetary system today is also such a variety of defective money as a banknote. It arises with the development of commodity exchange in various ways, but, in the end, its existence is associated with the fact that the banker issues it as an account of commercial bills.

A banknote as one of the forms of credit money differs from paper money in that it does not have forced circulation and is backed by gold and other bank assets. Subsequently, the banknote loses these features and, in fact, is no different from paper money.

The transformation of banknotes into paper money, that is, into fiat money for gold, is associated with complex processes in the development of credit relations. Among the many reasons for this phenomenon, the most important are the issuance of banknotes by commercial banks, their more real backing with gold, and the widespread use of government bonds for their backing.

Of significant importance in the monetary system today is also such a variety of defective money as treasury notes - fiat money issued by the treasury. The state uses them to cover the budget deficit. The main difference between treasury bills and banknotes is the forced nature of their circulation and their inexchangeability for gold. However, subsequently their differences from credit money (banknotes) disappear due to the transformation of the latter into paper money.

Conclusion

Under capitalism, when commodity production acquires general character, full-fledged money is gradually losing its importance in monetary circulation and in the 20th century it is almost completely out of circulation. At the same time, banknotes lose their ability to be exchanged for gold and turn into paper money. An important transformation of monetary systems is taking place, the main feature of which is their transformation into paper money systems, where the main element is defective money.

With the collapse of the gold standard in the vast majority of countries, a new type of monetary system was formed, which was called paper, or money-paper. This type is characterized by the fact that in it the role of the universal equivalent is no longer played by a commodity that has its own value and which, precisely in relation to this value, acts in the sphere of exchange, but by a commodity that has no value of its own. The central element of this type of monetary system is paper money. Paper money is a nominal token of value that replaces full-fledged money in circulation and is issued by the state to cover its expenses.

Bibliography

1. Bazyleva R.G., Gurko A.S. Macroeconomics M., 2000

Dadashev A.Z., Chernik D.G. Russian financial system textbook, M., 1997

Zhukov E.F. Money. Credit. Banks M., 2000

Kozyrev V.Sh. Fundamentals of modern economics, M., 2000

McConnell, Bru Economics, M, 2003

Pashkus YuV Money: past and present, 1990

Usov V.V. Money, money circulation. Inflation, M., 1999

Magazine Money and Credit 5/2000

Magazine Finance and credit 7/2000

IVF magazine 5/2006

Magazine Business and banks 15/2005

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Metal (full) money(full bodied money) - during the period, banknotes made of precious metals (gold or silver). Their nominal and real values ​​are the same, they perform everything, including the formation of treasures. A feature of full-fledged money was that their nominal value basically corresponded to the value of the metal contained in them. It was the presence of intrinsic value in metallic money that ensured their universal recognition.

Metal (full) money is a type of money that is directly or indirectly based on the value of a precious metal, such as gold or silver.

Currency, the purchasing power of which is directly based on the value of the precious metal, are real money, in exact accordance with the meaning of this term. Banknotes whose purchasing power is indirectly based on the value of the precious metal are representatives of full money or change money.

The purchasing power of full-fledged money (their ability to be exchanged for a certain amount of goods and services) depended on the value of the metal contained in them. The more the gold (silver) coin weighed, the higher was its purchasing power. As the value of gold changed, so did the purchasing power of gold money.

Gold was the highest form of valuable money. Since gold coins had their own intrinsic value, they performed. Gold treasures acted as an automatic spontaneous regulator of money circulation: when the need for commodity circulation in money decreased, the coins that became surplus went out of circulation into treasure, while when they increased, coins came into circulation from treasures. Therefore, the amount of gold money in circulation always corresponded to the need for commodity circulation in money.

Classification of good money

The main forms of valuable money are:

1. ingots;
2. coins (full, change);
3. banknotes.

Ingots

The first full-fledged money was issued in the form of ingots. Certifying the purity of the metal and its weight, the supreme rulers branded the ingots, trying to overcome the inconvenience associated with determining the quantity and quality of the metal contained in the ingot. In various sources on the history of money, there is information that the first ingots of metals, confirmed by a certain brand, were widely used in Ancient Babylon and Egypt. The disadvantages of metallic full-fledged money in ingots were their weak divisibility and limited transportability (see).

coins

Unlike commodity money and unmarked ingots of metal, they were the first sufficiently universal means of payment. Because their quality and weight were certified by trial. They were recognizable, durable, divisible and transportable.

It is believed that the first coins were put into circulation in the Lydian kingdom in 640-630. BC. They were minted from a natural alloy of gold and silver. And they were square. In 550 BC in the Lydian kingdom they began to produce full-fledged gold and silver coins. Around the same time, the first coins were minted in ancient Greece. Later, in 600-300 years. BC, the first round-shaped coins were issued in China. And in 275-269. BC. silver coins circulated in the Roman Empire and then spread throughout its colonies.

Starting from 800-900 years. AD in most European countries, including Russia, their own coinage appears, and coins are actively beginning to circulate throughout Europe.

Since the weight content of the first coins coincided with the denomination minted on them, the name of the weight unit was often repeated in the currency, for example, hryvnia, pound, etc.

In addition to full-fledged coins, there were change coins. They were fractional parts of full-fledged coins. Usually the minting of change coins took place in a closed order from state-owned metal at the state mint.

When full-fledged coins were worn out during use, when coins were damaged by private or state issuers, their weight content decreased. At the same time, the coins continued to circulate at the same denomination. This quickly led to the idea of ​​the possibility of counterfeiting coins, i.e. purposeful minting of defective money. In defective coins, the nominal value is higher than their commodity (internal) value. However, unlike full-fledged money, defective coins did not provide for any exchange for full-fledged money.

coin income. The minting of defective coins brought monetary income. Coin income is the difference between the face value of the coin and the market value of the metal that was spent on its manufacture. With the formation of nation-states, coinage became the exclusive privilege of governments and was called monetary regalia (see). The coin regalia is the monopoly right of the state to mint an inferior coin. This prerogative of the government was never subsequently relinquished, arguing that it was necessary for the common good. Profit from the monopoly issue of money is called share premium or seigniorage.

Banknotes

The expansion of commodity production led to an increase in exchange transactions. Full-fledged money was not able to meet the growing needs of the economy in the means of circulation, so there was a need to introduce a new form of money - which were representatives of full-fledged money.

It is known from the history of money that the first European banknotes in 1661 were issued by the Bank of Sweden. Banknotes, the issue of which was regulated by the state, appeared in England in 1694.

The first Russian banknotes appeared in circulation under Catherine II in 1769 and, by analogy with French ones, were called.

Partially coated banknotes had direct security, which consisted of precious metals and bills of exchange, were exchanged for gold in unlimited quantities (the exchange rate was below par), were issued by a state bank, whose activities were limited by the institution of issue law.

Uncoated banknotes did not have direct security, they were not exchanged for coins, they were recognized; the right to issue additional banknotes was retained by the state bank and was periodically revised upwards.

Over time, banknotes evolved from the first form to the third. Their gradual change was the result of continuous emission, which, given the limited official gold reserves, led to the impossibility of exchanging all issued banknotes for gold. In 1976, gold was secured by international agreements. Banknotes were finally transformed into non-changeable ones.

Currently, metal (full) money is called a coin, i.e. banknotes made of metal, as opposed to banknotes printed on paper.

The concept of metal (full) money includes and. As a rule, they act in the form of a small bargaining chip. At the same time, collection (numismatic) coins are issued in a limited edition, incl. and from (as a rule, large denominations - in some Western or gold-mining countries), having legal tender value according to face value, but sold on the market at numismatic value (see Numismatics).

Coins made of precious metals often have a purpose, in which case their price is guided by the price of gold bullion (monetary gold). The production (minting) of the coin is carried out by a special enterprise -. The decision to issue a coin into circulation is made within the framework of the regulation in the country.

As a result of the development of commodity relations, a universal equivalent, money, emerges from the commodity world. The functions of money were originally performed by noble metals - gold and silver. V Ancient Russia silver bars served as money. In the XI century. coins practically went out of circulation, in the XII century. appeared silver payment bars - hryvnia. The East had a great influence on the development of monetary circulation, since feudally fragmented Russia was in ϶ᴛᴏ time under the yoke of the Golden Horde. Initially, the ruble was synonymous with the hryvnia, later the name of the monetary unit was assigned to the ruble, the weight unit - to the hryvnia. It is officially believed that the ruble originated from the hryvnia weighing 200 g of silver, i.e. the first rubles were ingots. Payment bars in the form of hryvnias were inexchangeable, served exclusively large wholesale transactions and were used mainly for paying tribute. Therefore, an objective necessity was the appearance of coins used to service retail turnover.

The beginning of monetary circulation in Russia was laid in the 14th century, in a strictly defined amount of coins began to be minted at the mints of Moscow, Nizhny Novgorod and Ryazan. The ruble from an ingot turned into a countable ruble. Do not forget that the reform of Elena Glinskaya in 1535-1538 played an important role in the formation of monetary circulation, which provided for the withdrawal of defective money from monetary circulation, streamlining the weight content of the ruble and the introduction decimal system money account. As a result, the ruble became equal to 10 hryvnias, 1 hryvnia - to 10 kopecks.

Money(denga) - Russian silver coin of the XIV-XVII centuries. Minted since the end of the 14th century. in Moscow, from the beginning of the XV century. - in almost all other Russian principalities, as well as in Novgorod (since 1420) and Pskov (since 1425). Images on coins of the 15th century. were distinguished by exceptional diversity, and in Moscow the image of a horseman with a falcon or with a spear, which later became the coat of arms of the city, was the most popular. Initially, 200 coins were minted from silver hryvnia (48 spools), which made up the Moscow ruble.
It is worth noting that the rest of the principalities gradually, as a centralized state was formed, were deprived of the right to mint their own coin. As a result of the reform of Elena Glinskaya, 300 coins with the image of a horseman with a spear weighing 0.68 g each or 600 coins with the image of a horseman with a sword weighing 0.34 g began to be minted from silver hryvnia. The name “Moscow money” was strengthened behind the latter; subsequently they became known as Novgorodians or kopecks.

In ϲᴏᴏᴛʙᴇᴛϲᴛʙii, with the reform of Peter I, the silver kopeck was replaced by a copper one, a silver ruble was introduced - a coin similar to the European thaler, a countable hryvnia became a silver coin of 10 kopecks, gold chervonets began to be minted regularly, and from 1755 - imperials and semi-imperials. From 1700 to 1816, copper money was regularly issued under various names (1/2 kopeck, money)

The consolidation of the function of the universal equivalent for gold was facilitated by its main features: qualitative uniformity, quantitative divisibility, portability (a small amount of metal embodies a large number of labor), the safety of the ϶ᴛᴏth noble metal. Gold is one of the most labor-intensive metals in terms of mining. This is a rather rare metal, and its industrial development is carried out even when it contains very little in the rock (usually not less than 6 g per 1 ton of rock). All gold mined in the world from ancient times to the beginning of the 80s of the XX century was estimated by experts at 100 thousand tons. Collected together, it would be a cube, the face of which would be only 17 m. 9 km and a height of 2.5 km. Money as a medium of exchange takes the form of a coin. The origin of the word "coin" is associated with the name of the temple of Juno-Moneta, on the territory of which in the 4th century. BC e. The coinage of ancient Roman coins began. In the form of a coin, a local and political character is demonstrated, limiting the circulation of money to the territories of individual states, internal commodity circulation. The coins speak the most different languages and "wear" various national clothes.

It is important to note that one of the most important results of the evolution of metallic money was the appearance of their denominations - concepts that personified a certain weight standard of monetary metal and were assigned to money as their names. The new qualities of money, which the ingots did not have, made it possible, when making calculations, to be limited to their simple recalculation and, over time, to abandon weighing. Signs of these qualities are inscriptions and signs on both sides of the coins. The emergence of coins was due to the development of commodity-money relations. In ϶ᴛᴏm, one of the most important qualities of metal was realized - cost.

Gold money acquires the ϲʙᴏ value created in the process of gold mining. It is their own intrinsic value that gives them absolute stability independent of the commodity market. When the intrinsic value obtained in the sphere of gold production coincides with the exchange value of gold in the sphere of circulation, stability of the circulation of gold coins is achieved.

Before early XIX v. in the monetary systems of most countries, the parallel circulation of gold and silver coins, which had the same status, dominated. Under ϶ᴛᴏm, the price ratio between gold and silver was not officially established, but was determined by market mechanisms. In some countries, the circulation of full-fledged coins made of silver and gold was carried out at a price ratio between gold and silver established by the state.

Gold is a soft metal, and coins are gradually worn out in circulation. Scientists have calculated that, on average, a gold coin loses 0.07% of its own weight annually. This means that over 2600 years of circulation of gold coins, the total amount of losses exceeded 2 thousand tons of gold. Worn coins cease to be the actual equivalent of goods sold. The functional existence of gold displaces its real existence. The contradiction between gold as a coin and gold as a universal equivalent leads to the need to replace gold with signs of value - paper money. Along with this, money in the function of a medium of circulation acts as a fleeting intermediary in the exchange of goods. In connection with the data, the idea of ​​cheaper monetary material appeared and began to make its way.

Under the conditions of metal circulation, for simple reproduction, an annual influx of gold was required, since there was a natural wear and tear of the coins. In this case, the state spends huge amounts of social capital necessary for the development of the gold mining industry. In the absence of its own production, it is forced to import precious metals in exchange for the export of goods. It should be noted that the growth rate of metal receipts, taking into account the velocity of money circulation, is closely related to the extraction or purchase of gold and silver. There will be difficulties due to insufficient supply of precious metals. In view of the fact that gold and silver are not capable of earning interest on their own volume, full-fledged money has become of little use in servicing financial transactions related to the circulation of loan capital. The circulation of coins became a brake on the development of individual capital, as it reduced the rate of their turnover. The cumbersome money supply led to a slowdown in the circulation of the mass of commodities and thus to a fall in the annual rate of surplus-value. It is important to note that at the same time, the costs of sending gold to the regions increased, as well as the costs of gold mining. The limited natural reserves, the impossibility of the existing production volumes to keep up with the requirements of social production led to a deadlock.

Over time, the names of monetary units are separated from their real content for the following reasons:

• the introduction of foreign money among less developed peoples (in ancient Rome, the basis of the monetary system was copper ass, gold and silver were originally circulated as foreign goods);
• the displacement of less noble metals by more noble ones as labor productivity grows: copper was replaced by silver, silver by gold, the value ratio between gold and silver in the Ancient East of the XV-XVI centuries. BC e. was 1: 6, in the market economy of the XIX century. - 1:15, currently - 1:50;
• falsification of money by the state.

It is worth saying - full-fledged money was issued in the form of an ingot, coins, banknotes with full gold plating. The first real money appeared in the form of ingots. It is worth saying to overcome the inconvenience associated with the determination of quantity! and the quality of the metal contained in the ingot, the state began to brand ingots, showing the purity and weight of the metal. The first money in the form of metal ingots, confirmed by a certain hallmark, was in circulation in the Ancient One. Do not forget that Babylon and Egypt. The disadvantages of full-fledged metal money - in the form of ingots were poor divisibility and transportability. Coins were the most convenient form of valuable money. The first coins were minted by priests in the state of Lydia in the west of Asia Minor in the 7th century. BC e. In Russia, its own coinage appeared in the 9th-10th centuries. In the Middle Ages, in conditions of feudal fragmentation, coinage was minted not only by kings, but also by numerous feudal lords, as well as cities. With the formation of nation-states, the minting of coins became the privilege of the central government. With ϶ᴛᴏm, as K. Marx noted, “as a coin, money loses its universal ϲʙᴏy and acquires a national, local character.”

The round, disc shape of the coin, as the most convenient for circulation, replaced other forms used in antiquity (rectangular, oval). Each coin has a certain image and an inscription - a legend containing the name of the city, state, year of minting, name of the coin. The coin is different front side(obverse), reverse (reverse) and edged (edge) A coin of the same name with a monetary unit is called the main one, and combining several monetary units is called a team (for example, in pre-revolutionary Russia, gold coins in denominations of 10 and 5 rubles.) A coin that is part of monetary unit, called fractional (for example, a 10-kopeck coin in pre-revolutionary Russia)

To give the coin strength, its minting from precious metal was carried out with the addition of a certain amount of ligature. A coin whose face value ϲᴏᴏᴛʙᴇᴛϲᴛʙ indicates the value of the metal contained in it and the value of the coinage is called full; for a defective coin, it exceeds this value.

The quantitative content of the precious metal in the ligature alloy, from which the coin is minted, is called the sample. In countries with a metric marking system, the coin alloy used for minting gold and silver high-grade, i.e. a full-fledged coin consisted of 900 weight parts of the currency metal and 100 parts of the ligature. In Great Britain, the sample of the coin alloy was assumed according to the carat system of samples: a gold coin had 22 carats, or 916 parts of the currency metal according to the metric system, a silver coin had 12 carats, or 500 parts according to the metric system.

In pre-revolutionary Russia, where the spool system for designating samples was used, the sample of a gold and silver coin was expressed by the weight of gold and silver in 96 units of the alloy. So, the Russian gold coin had a fineness of 84.4, which ϲᴏᴏᴛʙᴇᴛϲᴛʙoval 900th standard according to the metric system. The state allowed the limit of deviation of the weight and sample of the coin from the established sample - remedium. In case of violation of the remedium (damage to the coin), the coin was withdrawn from circulation. The rules that determine the order of minting coins in the country are combined in the monetary charter, which changes in ϲᴏᴏᴛʙᴇᴛϲᴛʙ and with changes in monetary systems.

Each working person receives a fee for the services provided in a certain equivalent. He may have various forms, but many citizens, answering what types of money exist in our time, are able to give few examples, talking about electronic wallets, paper banknotes and gold coins. The listed payment elements are only a part of economic system and in reality there are many more.

What are the money

This specific item may or may not be complete. Some citizens believe that it is more correct to divide money into cash and non-cash, but this is not so. Cash may be worthless. Many finances separately consider electronic means of payment, because. it is difficult to determine the costs of their production and correlate them with the nominal value.

Complete and incomplete

When a product is assigned to one of these categories, its nominal and real value play a role. If both of these parameters are the same, then the money is considered full-fledged. If the face value exceeds the cost of producing the goods, then it is considered defective. Commodity and metal money is considered to be full-fledged money, and paper and credit money are inferior.

Properties of money

The essence of a product is always manifested through its characteristics. In the case of money, the main property is their permanently recognized value. Funds have a personal exchange value. Money is considered the most liquid property. They can always be exchanged for the currency of another state or for securities. They also make demands on the resources used to produce money:

• Safety. Funds must be protected from copying, counterfeiting and changes in denomination.
• Persistence. The product should not change its physical and other properties during long-term storage.
• Recognition. Funds can be easily identified.
• Unity and divisibility. A product cannot significantly change its properties if it is combined into one large part or divided into many small ones.
• Uniformity in quality. Individual copies of coins and banknotes should not have any unique properties.

What are the functions of money in the economy?

This tool is used to determine the value of commodity resources that are part of the economic life of society. Thanks to absolute liquidity, the currency plays the role of the foundation of the economic system of each state. Any kind of money in our time is a universal measure of the value of products and services. The essence of this means of payment is revealed in its five functions:

1. The measure of value. Used to express the price of all goods and services that are comparable qualitatively and the same quantitatively.
2. Instrument of payment. The function is performed when receiving goods on credit, paying utility bills, taxes, and paying salaries.
3. Recourse tool. Allow to simplify the process of exchange and receipt of products.
4. Means of accumulation and savings. The most convenient form of wealth storage due to high liquidity.

In some sources, the properties of money include their entry into the international market. World funds become when they participate in the circulation of finance between several states. Money used to maintain international economic relations is called currency. It can be foreign and state. The dollar and the euro are very popular among foreign currencies in Russia due to the high exchange rate. Foreign money includes:

• funds on accounts in monetary units of foreign countries and in international monetary units;
• banknotes in the form of coins and banknotes that are the legal tender of a state and are currently in circulation.

Main types of money

Throughout history, mankind has used different types means of payment. The simplest of these were products that the owners exchanged for other goods. The emergence of the concept of commodity money is associated with this moment in the development of the economic system. In the everyday life of financiers, such concepts as fiat, credit, secured, full and defective money often appear. All of them are types of means of payment used to pay for services, purchase products and repay loans.

Commodity

The category of funds means real products that have their own value and utility. They are classified as real money. Such funds include all varieties of products that played the role of an equivalent in the initial stages of the development of trade (grain, fur), and metal coins. The use of the latter type of commodity currency continues to this day.

Fiat

Paper rubles, euros and dollars belong to this category of money. A great feature of fiat money is that its real value is much lower than its face value. They have no value, they are issued by the state, but they are considered legal tender of any country on its territory. Fiat money can be produced in the following forms:

• paper banknotes;
• non-cash (on bank accounts).

Credit

They are issued in the form of banknotes that cannot be exchanged for gold, and in the form of bank deposits. From a legal point of view, these documents allow the owner to demand a debt from the debtor even in cases where he was not a creditor. This form of means of payment can be used to pay off your own credit obligations or purchase any goods. Payment of the debt is carried out within the period indicated on the paper.

Secured

Their role is played by certificates or certain marks that can be exchanged for a fixed number of products. In practice, secured money becomes the representative of commodity money. At the first stages of the development of trade relations, they were used as confirmation that the buyer had full-weight coins. After the abolition of the gold standard, such banknotes are no longer in circulation.

Types of money in the modern world

The progress of society does not stand still. One era is replaced by another, and new means of payment are periodically introduced into economic systems. If you ask the bank about what types of money exist in our time, the specialist will definitely report on metal, paper and credit means of payment. They differ not only in the form of production, but also in the concentration of value.

metal

The appearance of these means of payment is associated with the special properties of the material from which they are produced. Gold and silver, even when transported over long distances, do not change their properties. Based on these properties, the states decided that the institutions began to mint coins. The role of metallic money increased greatly after the demonetization of gold began. This metal began to be gradually withdrawn from the international economic system.

Coins can be bimetallic or made entirely from one material. Modern metal currency is made from cupronickel, copper, steel and brass. Completely gold coins were withdrawn from circulation. On the reverse, the denomination is often depicted, and on the obverse - the state emblem. After the withdrawal of gold from circulation, copper is added to the coins to achieve a rich yellow hue.

Types of paper money

Symbolic means of payment are used in all countries of the world. Approximately 70% of Russian citizens, when asked what types of money exist in our time in paper form, will begin to transfer all denominations of rubles. This answer will not be correct. Paper money refers to all funds that have a value much lower than their face value. Their list includes:

• banknotes;
• checks;
• treasury notes;
• bills;
• bonds;
• other types of securities.

The last category includes legally certified papers confirming the owner's property rights to certain resources. It can be a certain amount of money or some account number. Securities are available for circulation, documented, standardized, liquid and always recognized by the state. If necessary, the owner can sell them and receive remuneration in foreign or domestic currency.

Treasury notes

The Federal Treasury was engaged in the production of this form of money. According to their characteristics, they completely coincide with bank notes. Treasury notes, along with rubles, were widely used under the USSR. They could be given out as a salary. After becoming Russian Federation during the first 3 years, citizens were assisted in exchanging treasury notes for the traditional state currency.

The first paper money introduced in countries instead of coins made of precious metals. In some sources, this term means a contract that involves the transfer of money, jewelry or securities from one participant in the transaction to another. In the world, their release ceased by 1823. Banknotes that were in use were confiscated, giving in return paper currency or other goods that the owner of the document was supposed to receive under the contract.

Modern credit money

Commercial organizations not only act as intermediaries in transactions, but also provide financial assistance to the population. It is difficult not to mention credit means of payment, considering what types of money exist in our time. In short, they represent debt obligations that must be realized within a specified time frame. These include:

• checks;
• bills;
• money banknotes.

Bills

This security is issued in the form of a debt obligation in writing. The essence of the document is normal. The debtor undertakes to pay the amount specified in it to the payee, but strictly on a specific date and at a specified place. A bill of exchange can be one of 4 types - bank, treasury, simple or transferable. The main feature is the service for the most part of the wholesale trade. Repayment of the balance of mutual claims is carried out by paying cash.

All credit funds are issued by the central banks of the country. Initially, such money was doubly secured - they had a commercial and gold guarantee. The main difference between a banknote and a bill is that it has an unlimited form, that is, it is valid for an unlimited period of time. Nuances:

1. The collateral function lies with the central bank of the country.
2. In the course of development, banknotes lost two types of security at once.
3. Today, banknotes enter circulation in several ways - by exchanging foreign money for banknotes of their country, through commercial banks or state financial and credit institutions.
4. They are used in different areas human activities, and do not belong to a special currency.

Checks

This document is an order from the owner of the bank account to transfer a certain amount to the bearer of the check. For a full-fledged check circulation, an agreement is drawn up between the lender and the client, where the total amount of the loan provided is stipulated. All checks differ in their characteristics and are of several types: nominal, order and bearer. The last type can be brought to the bank to receive money.

Credit and payment plastic cards

Under the leadership of the central bank, financial institutions develop payment products. A credit card is intended for transactions with borrowed funds. By its properties, a credit card is almost the same as a loan. The main difference is that the funds can be used as needed, with interest accruing only on the amount actually used.

Credit cards are reusable, that is, after repayment of the borrowed amount, you can use credit funds again. At the same time, for periods when credit funds are not used and there is no debt on the account, commissions are not charged (with the exception of payment for additional services, for example, mobile banking). Payment plastic cards are intended for making transactions with the help of money already on the account.

Electronic money and electronic means of payment

Experts answering the question of what types of money are always mention the finance used on the Internet. The list of electronic money includes not only the money of certain countries that are in the bank accounts of customers, but also cryptocurrencies that are not related to any country. They are calculated in the same way as with standard banknotes. E-money meets the following criteria:

• stored on electronic media (card or bank account);
• accepted for payments by other organizations, except for the bank that issued them;
• are made in the same volume as the amount sent by a particular person to the bank.