Types of modern money cash and non-cash. Money and Cash

Money surrounds people everywhere. This is a specific product that serves as an equivalent for estimating the value of other goods and services. Everything can be exchanged for money. This is the only object that is created in order to get rid of it sooner or later. A kind of financial asset is used to complete purchase and sale transactions. It is impossible to imagine life in a civilized society without money. But once they did not exist at all.

When did money circulation begin?

Money in its classical form arose spontaneously. Commodity circulation existed even in ancient times. People exchanged things and food. When there was a surplus of goods, there was a need for a special asset that, when it entered circulation, could be exchanged for one or another commodity. Money has become such an asset. The main functions of money are precisely in circulation for the purpose of exchanging goods between consumers.

Since ancient times, absolute liquidity has been considered the main property of money. They can be fully exchanged for a product or service. At different times and in different countries, precious metals, feathers, cocoa beans, and cattle were used as money. Only over time it became clear to people that it is better to make money with a constant weight and in a certain shape. Thus, the coins familiar to many arose. The metal was most suitable for the manufacture of a financial asset. It was easy to process and had good wear-resistant characteristics. The types and functions of money have changed over time. But their form has been preserved from ancient times. These are round coins or paper products.

The very first coins that were used as financial assets appeared in China in the 17th century BC. Money was made from an alloy of silver and gold. The function of money was to exchange them for goods and services. Thus, barter was replaced by financial turnover. Paper money appeared much later, also in China. After all, it was in this country that paper first appeared. The first money consisted of receipts for precious metals and stones, which were deposited in special shops.

Essence of money

Money is the main component of the economy of any society. The financial relations of representatives of individual countries could not be improved without a special asset. The wealth of an individual or society as a whole is expressed by money. The essence and functions of money are closely related. The main nature of financial assets is that they can be used to assess the quality and demand for a particular product or service.

Today, money is the universal equivalent. With the help of barter, of course, you can get the necessary goods. But it will not be possible to accumulate assets. It is no coincidence that even in ancient times, money circulation appeared, from which the division of society into classes began. It is money that divides people into rich and poor. The types and functions of money determine the development of the society in which they circulate.

In a market economy, money and its functions are constantly changing. Exchange rates depend on the events that take place in a particular society, natural disasters. One kind of money can strengthen or fall in relation to another kind. Despite this, the scope of the use of money is increasing every year. New types of financial assets are emerging. A striking example is electronic money, with which you can pay for the same goods and services or increase your capital.

Main types of money

All types of money can be divided into two large subgroups. This is commodity finance and symbolic. More specific types and functions of money may depend on the society in which they circulate. Based on the fact that they arose due to the need for commodity exchange, commodity finance is the main type. Money is a commodity that is capable of evaluating the value of all other goods and services. For a long time, precious stones and metals were used as commodity money due to their properties.

Today, full-fledged money is used, the value of which fully corresponds to the actual value of the metal. Metal coins are produced in various denominations. Thus, it is much easier to pay for a particular product. The coin has established external features. Money is made in a certain form, with a specific pattern.

Commodity also includes paper money. The types and functions of money in this format do not differ from coins. They were created in order to save metal. Paper is much cheaper. But in modern society, counterfeiting paper banknotes is almost impossible. They are made in a special way by state-owned enterprises. The highest quality dyes and paper are used. The difference between the real and nominal value of paper money is huge. Due to this, the share premium of the state treasury is formed. Money is able to cover the budget deficit.

Paper financial assets have a special economic nature. They are almost always unstable. There can be no permanent fixed exchange rate. The issue of money is not regulated by trade. That is why inflation occurs.

loan money

The total volume of services received, contracts concluded and obligations - all this is credit money. The essence, functions, types of this financial asset is determined by the agreement of the two parties. In any case, the essence of the loan is to return the money with interest. Credit finance can be issued in the form of banknotes, electronic money, bills of exchange or checks.

Separately, it is worth highlighting credit cards. They are the key to the bank account where the money is. The essence and functions of this type of money are the same as those of other types of credit finance. The only difference is that the loan agreement is drawn up once. It is possible to withdraw money from the account an unlimited number of times within the limit provided by the bank. The only thing you need to do is make the monthly minimum payment.

Money as a measure of value

Money is the only tool today economic relations in any society. The functions of financial assets cannot be realized without the participation of people. By setting prices, the value of a good or service is determined. Simply put, price is the value of a particular object in monetary terms.

Money fulfills the ideal function of a measure of value. In the modern world, banknotes of various denominations are issued. Thanks to this, you can set the most accurate price for a product. Under these conditions, barter loses its relevance.

At the same time, the function of circulation of money as a measure of value is performed virtually. Indeed, in order to determine the cost of goods and hang a price tag on it, real financial resources are not needed. The seller sets the price on his own, in his mind. In the same way, in order to find out the cost of a product or service, it is not at all necessary to have real money available. All you need to do is to study the price tag or price list.

Measuring the cost of various services and goods can be compared to measuring distance in meters. The monetary unit acts as a scale. Thus, the value of individual resources, services and goods is determined. Prices in a particular market can be influenced by a huge number of contracts for the sale of goods and the provision of services. The more the demand for a separate object of the economy grows, the faster its value increases. It turns out that the main functions of money are closely related. The functioning of financial resources as a measure of value cannot be carried out without real money circulation. At the same time, money acts not only as a means of circulation, but also in the form of a means of payment.

Functions of money as a medium of circulation

Only real money can be used as a medium of exchange. The functions of money are the simultaneous circulation of goods and financial resources. The seller receives monetary assets and the buyer at the same time becomes the owner of the desired product. In this case, the transaction is considered genuine only if the relevant documents are available. When buying real estate or expensive objects, a contract of sale is concluded. Checks are used in shops with small goods.

In the global economy, all functions of money are important. The means of appeal must be implemented. If the seller does not enter into an agreement with another commodity owner using the proceeds, the money will lose its value. Crisis phenomena in the economy are generated by a break in the chain of purchase and sale. It was the impossibility of realizing the function of money as a means of circulation that became the impetus for the emergence of paper financial resources. The amount of money did not meet the need for financial circulation. In this regard, history knows many cases of serious economic crises. In order for the function of a medium of exchange to be realized in full force, each commodity must be assigned a value equivalent to the weight part of one or another precious metal.

More correctly perform the function of money as a means of circulation, metal coins. At the same time, it should be borne in mind that today not the highest quality metal is used for the manufacture of coins. Money is erased, losing its original weight. In order for the function of money to continue to perform correctly, low-quality coins must be disposed of in a timely manner.

Money is a means of payment

For most people who do not understand the nuances of economics, money serves as a payment function in the first place. In this case, the buyer may not necessarily pay for the goods immediately. The function will be implemented even if a loan agreement is drawn up. Often there are cases when the goods have already been paid for, but the owner cannot use them yet (manufacturing of furniture to order). At the same time, money also acts as a means of payment. To pay taxes, rent housing, wages, employees also need financial resources. This is the function of money. The means of payment can be either real or virtual. Electronic money has recently become more and more in demand. People buy goods via the Internet, pay for services through special services. It is not necessary to have a certain amount of money in your wallet. The main thing is to open a bank account.

Another possibility of an economic crisis is connected with the function of money as a means of payment. This became especially true with the development of the credit sector. It often happens that the payer does not have funds at the end of the loan agreement. He is unable to meet his financial obligations. At the same time, many commodity owners buy goods from each other on credit. The insolvency of one economic entity leads to the insolvency of another. Banking institutions are a prime example. If one client cannot repay the money on the loan, the financial institution will not be able to return the deposit funds to another client.

Money as a store of value

Financial resources that are not involved in circulation and are not used as payments can become an object of accumulation and increase in wealth. What functions money performs, people have understood since ancient times. But it was not always possible to implement them correctly. Accumulating wealth, many simply depreciated the money. Inflation, economic crisis, warfare can cause huge wealth to lose its value.

Saving money at home is not practical. In ancient times, people kept treasures and gold coins in chests. Thus, the money lay without movement, withdrawn from commodity circulation. It was not possible to increase wealth in this way. The one who does not keep money, but puts it into economic circulation, does the right thing. A smart entrepreneur who spends a certain amount to develop his business only increases the money. The functions of money as a means of accumulation are fully realized.

The accumulation of money today is a prerequisite for the development of any production. At the same time, the state functions normally, inflation does not hit the pockets of citizens. All money and its functions are closely related. Finance - as a means of circulation - can simultaneously act as a means of accumulation. The main thing is to approach the issue of saving money wisely.

What is world money?

The development of the country is impossible without international economic relations. What functions money performs should be understood by all heads of state. Moreover, each individual country can have its own currency. In the world market, many monetary units are losing their power. If the state does not have a high economic development, his currency will not be claimed.

In the international market, the currencies of individual developed countries (US dollar) are most often used. In addition, artificially created currencies may be used. The prominent representative is the euro. World money and their functions are closely related to the finances that work within a particular state. The only difference is that money circulation takes place at the international level. On the international market, not only individual states, but also private organizations and structures can act as sellers and buyers.

Modern monetary system

Today, paper money is widely used. The functions of money determine the degree of development of a particular state. If they are fully implemented, the economic crisis can be avoided.

Modern paper money has its own distinctive features. First of all, this is the abolition of the gold content. Paper cannot act as an equivalent to precious metal. Gold has left the international settlement system.

Over the past few decades, the monetary system has been characterized by a decrease in cash and an increase in the amount of electronic money. At the same time, gold practically does not fulfill its monetary functions today.

What functions of money would not be provided, they are necessarily regulated by the relevant state body. depends on his work financial condition country as a whole and its position in the international market.

2.1. Types of money

Money currently exists in the form of cash and non-cash money.

Cash exist in the form of coins, banknotes (credit money, bank notes) and treasury notes.

Sometimes checks and plastic cards are also referred to as cash. However, checks and plastic cards only represent non-cash money in bank accounts. By themselves, they cannot perform all the functions of money and therefore are not cash.

Treasury notes - this is a type of money issued by states (issued mainly in the past by treasuries, hence their name) to cover their expenses (to cover budget deficit). They had no gold or commodity backing and circulated at a rate forced by the state. Currently, treasury notes have retained their circulation only in the United States and Belgium.

Treasury notes or "banknotes" appeared in Europe and North America in the middle of the 18th century. In Russia - in 1769 under Catherine II and existed until 1843. In the USSR, treasury notes were issued until 1925.

Banknotes (bank notes, credit money) - This is paper money currently issued by the central banks of the countries of the world.

Banknotes appeared in the 17th century. In the beginning, almost everyone issued banknotes. commercial banks in the form of promissory notes (promissory notes). For example, in Great Britain the first bankers were jewelers. They found that they could earn income by accepting gold and silver for safekeeping and issuing bills of exchange in return. Bankers and, accordingly, their bills enjoyed the confidence of citizens, since IOUs could be exchanged for gold and silver coins at any time. Therefore, over time, bills began to circulate on their own (transferred from one owner to another), representing precious metals. Gold and silver coins, with few exceptions, were kept by bankers for a long time. And the bankers began to issue them loans at interest. For convenience and expansion of the circulation of their bills, bankers began to issue them in a convenient category. This is how banknotes were born.

With the approval of banknotes as reliable representatives of precious metals, i.e. money, banks began to issue loans with their banknotes (hence the name - credit money).

Over time, in all countries, the right to issue banknotes into circulation in order to further increase their reliability was transferred by law exclusively to central banks. After that, banknotes acquired the function of national and world money.

Currently, the banknote is a perpetual obligation of the central bank, i.e. states. Thus, banknotes have a state guarantee, primarily in the form of all assets of the Central Bank, including the country's gold and foreign exchange reserves. In addition, the basis of this guarantee is the GDP (its volume and quality) of the country. Currently, banknotes are not exchanged for gold, they are secured by the assets of the Central Bank, including gold and foreign exchange reserves, and also indirectly by GDP. Paper money not backed by gold is called fiduciary money. And the monetary system is fiduciary. Currently, they include all banknotes.

The number of issued banknotes is linked to the needs of the economy and the achievements of modern economic science.

Non-cash money are funds in bank accounts (account entries) used for non-cash payments, as well as accounts for settlements by checks and plastic cards.

Check It is a means of obtaining cash from a current bank account, a means of circulation and payment for goods, debt repayment, a means of non-cash payments.

A plastic card- this is a registered document (including electronic), proving the identity of the owner of the bank account and giving him the right to purchase goods and services in retail trade without paying in cash, to receive cash from banks and ATMs.

Checking accounts in banks are money because they can be converted to cash at any time.

In addition, in the literature there is the concept of "almost money" or "quasi-money". These include assets that can be quickly converted into money and put into circulation. These are savings accounts, term deposits, deposit and savings certificates, short-term government securities. The concept of "almost money" is vague and not precisely defined. They sometimes include bills of reliable banks, in particular Sberbank and Vneshtogbank.

In Russian literature, the concept of surrogate money is also used. These include unreliable bills of firms, corporate securities, receivables from banks, etc.

Money is valuable money only if it performs all the functions of money.

The reliability and usefulness of money is currently determined mainly by the level of economic development of the country or group of countries (euro) issuing this money.

cashless money and non-cash payments displaced in all developed countries cash and cash transactions. In the USA, cash is received wages only a few percent of employees.

The advantages of non-cash money and cashless payments are as follows:

Reducing distribution costs;

Acceleration of money turnover;

Convenience;

Safety;

Transparency of non-cash payments (it is difficult to hide the settlement transaction from the tax authorities).

In Russia, the share of cash money circulation is still large and amounts to about one third of the total money circulation. The main reason is a significant sector of the shadow economy (according to various estimates - 25-50%) and the criminalization of the economy. Another reason is the dollarization of the economy. Settlements for large purchases were and are being made by the population in US dollars and euros. The circulation of cash dollars and euros in Russia is supported by high inflation and significant imports of goods. At the same time, the shadow turnover of foreign currency (share) is gradually decreasing.

Another Russian problem is the widespread use of enterprise promissory notes as money substitutes. In 1997, only 30% of settlements were carried out with the help of money, and the rest with promissory notes. At the beginning of 2004 the volume bill circulation According to experts, it was about the same as the cash turnover (as of January 2004, about 1 trillion rubles). This largely determined the 3rd banking crisis of the summer of 2004. A lot of illiquid bills of crisis enterprises were in circulation. And they were no longer accepted in settlement transactions.

2.2. Monetary Aggregates

The presence of various types of money, as well as "almost money" led to the formation of groups of money according to the degree of their liquidity.

Monetary groupings are called monetary aggregates.

In Russia the following division of monetary aggregates is used.

M0 - cash. The structure of the cash supply in circulation in the Russian Federation is presented in Table. 2.2.1.

Tab. 2.2.1. The structure of the cash supply in circulation

M1 = M0 + settlement and current accounts + demand deposits = cash + non-cash money.

M2 = M1 + time deposits of enterprises and the population in banks. The monetary aggregate M2 is called the money supply.

The M2 monetary aggregate, as defined by the Bank of Russia, is the volume of cash in circulation (outside banks) and balances in the national currency on the accounts of non-financial organizations and individuals who are residents of the Russian Federation . Changes in monetary aggregates М0, М1 and М2 in 2000-05. are presented in table. 2.2.2.

Table 2.2.2. Dynamics of the money supply in the Russian Federation

Source: Federal State Statistics Service

Continuation of the table. 2.2.2. Dynamics of the money supply (M2), at the beginning of the year

In this article, we will consider what types of money are, what their essence is, consider some examples, and also trace the evolution of types of money.

Main types of money

Globally, there are two main types of money:

1. Valid Money, i.e. money, the face value of which corresponds to their real (internal) value. An example of this type of money is money in the form of ingots and coins made of gold (see). The vast majority of monetary systems of early eras functioned on the basis of real money (see).
2. fiat money, i.e. money, the real value of which, as a rule, is significantly lower than their face value. For example, the cost of manufacturing a 100 dollar bill is less than 10 cents. Fiat money is the basis of all modern monetary systems.

Money arose at a certain stage in the development of society (see), when a certain intermediary commodity stood out in the commodity exchange process, which began to play the role of a universal measure or, so to speak, the equivalent of the value of exchanging goods. Thus arose historically the earliest type of money - commodity money.

commodity money

In different historical epochs and among different peoples, various goods and objects acted as money (i.e. intermediary goods): cattle, grain, salt, tea, tobacco, jewelry, arrowheads and spears, there were also completely “exotic” objects , for example, cowrie shells, etc. For more high level development of our civilization, the above items were replaced by precious metals - mainly gold and silver.

commodity money(they are still quite often called material money, natural money, real money or real money) - this is a type of money, in the role of which a certain product acts, which has an intrinsic value and has some utility. Therefore, such a commodity can be used both as money and directly as a commodity (according to its main intended purpose). For example, salt could be used both as money (to carry out barter transactions) and as a commodity for personal consumption - direct consumption, salting meat, for dressing skins, etc.

With the development of exchange, the role of money was assigned to one commodity - noble metals (gold and silver). This was due to their physical and chemical properties, such as:

• portability (there is great value in a small weight - unlike, for example, salt);
• transportability (convenience of transportation - unlike tea);
• divisibility (dividing a gold bar into two parts does not lead to a loss of value - unlike cattle);
• comparability (two bars of gold of the same weight have the same value - unlike furs);
• recognition (gold and silver are easy to distinguish from other metals);
• relative rarity (which provides noble metals with a sufficiently high value);
• wear resistance (noble metals do not corrode and do not lose their value over time - unlike furs, leather, shells).

On the basis of precious metals in different countries there were different types of monetary systems:

• (when only one metal was used as money - either gold or silver);
• (when both metals were used as money).

At first, noble metals were used in the form of ingots. The exchange service required constant weighing and division of ingots. Therefore, in the 7th century BC. in ancient Rome, in the temple of the goddess Coin, ingots began to be given a flat shape, the weight of the metal was set, and a portrait of the ruler was minted. This is how the first coins and money circulation based on coins appeared.

Although commodity money has long gone out of use, at the moment, under certain conditions, some goods continue to perform the functions of money. For example, in prisons, cigarettes are such goods for prisoners, in places of hostilities weapons and ammunition can be used as money, during severe economic crises - sugar, salt, tea, matches, etc.

Commodity money went out of circulation due to the fact that they had a number of shortcomings. As a rule, this is:

• non-portable (non-compact): took up a lot of space (large volume) - inconvenient for storage;
• heavy - inconvenient during transportation;
• indivisible (for example, live cattle);
• deteriorate during storage;
• too expensive to manufacture (because the real value of money (goods) must correspond to the nominal value, otherwise such goods will not be able to perform the functions of money);
• the insufficiency of the amount of money (goods) to meet the needs of the country's economy as production and the level of economic development grow.

Currently, the role of commodity money can be investment coins made of precious metals, which have the force of legal tender within the country.

Rice. Types of money

secured money

secured money- evolutionally the next type of money after commodity. Backed money (also called token money, representative money) is money, in the role of which are signs or certificates that can be exchanged at sight for a fixed amount of a certain commodity or commodity money, for example, gold or silver. As a matter of fact, backed money is a representative of commodity money.

The appearance of secured money was primarily due to ease of use - the convenience and greater safety of transportation, the absence of real damage and erasure of gold in the process of circulation.

It is believed that the first secured money appeared in ancient Sumer, where figurines of sheep and goats made of baked clay were used for payment. These figurines could be exchanged upon presentation for live sheep and goats.

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 connected with 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 with a decrease in the balance of values. 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.

There is another system for classifying money: cash and non-cash.

Content

Each working person receives a fee for the services provided in a certain equivalent. It can take 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 notes and gold coins. The listed payment elements make up only a part of the economic system and in reality there are many more of them.

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 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, paying 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 output on international market. world cash 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 of 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 types 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 gives way to another, and in economic systems periodically introduce new means of payment. 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 tint.

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 of exchange

This security is issued in the form 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 various fields of human activity, 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

Led by 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, no commissions are charged (except for payment of additional services, for example, mobile bank). 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.

To begin with, let's give a definition of what money is: their essence lies in the fact that it is a universal equivalent of the cost of other services and goods.

In those times when there was a surplus of goods, a universal means of payment was required. At first, people produced what they needed for their needs, some changed food for clothes and vice versa. Over time, the exchange process became popular, and then there was a need to create such a product that could serve as a means of payment for any other. Thus, money appeared.

Let's take a closer look at each of the points.

The measure of value

Appears at the time of the occurrence of the price, determining the cost of a service or product. The monetary value changes (price), it depends on the following indicators:

exchange conditions;

production conditions.

Medium of exchange - money

The essence of the means of payment lies in the fact that it is beneficial for both parties (seller-buyer) to make an exchange. And money is an intermediary in the transaction. In addition to being a means of circulation, it is also a functional means of payment (loans, mortgages, loans). The latter was the beginning of the appearance of plastic cards.

Instrument of payment

If to pay for a product or service, then it is possible to take the necessary on credit or with or goods-credit-money.

world money

The essence of money is that it is used for international payments. Today, the main international unit of payment is the dollar.

Types of money

They are divided into two groups: cash and non-cash. They are further divided into six subgroups.

Cash:

Small coin;

Paper money;

Credit (cards) money.

Cashless:

Credit cards (plastic);

Payment cards (plastic);

Electronic finance.

Let's look at some of the subgroups in detail.

Paper money includes treasury notes that are issued by the state, have no value as material. But they are applied in all calculations and payments. Banknotes are also referred to as paper money.

Credit money is checks, bills, banknotes.

Electronic financial resources are money, the essence of which is that they can pay for purchases / bills on the Internet, that is, they are in the electronic payment system ("WebMoney", "Yandex-money", etc.) and on bank accounts in electronic form .

Functions of money

1. Money is a universal opportunity to evaluate the value of goods (a measure of value).

2. Money is a universal means of purchase (medium of circulation).

3. Distribution function. It implies a transition from the owner to the recipient.

4. Savings and savings.

5. Currency exchange.

Conclusion

This article reveals what an entity, functions are. Payment means are required for service national economy. Their main function is to pay for goods and services. The type of money depends on the material of manufacture.