Money: origins and functions

Money, the origin of which is closely related tothe development of commodity relations and the formation of a valuation of products, today are an integral and significant part of the world economy. The history of their formation began many centuries ago, but even now we can observe their further development and transformation.

Money. Origin

Two theories of payment means formation are officially recognized:

1. Rationalistic, more based on history.
2. Evolutionary, explored from the scientific point of view, created and described in detail by Karl Marx.

According to the first, money appeared as a payment instrument as a result of an agreement between people. With their help it was much easier to exchange goods for different purposes.

The founder of the second theory is K. Marx, who presented his scientific work "Capital", where he detailed his own theory of the evolution of means of payment. The commodity is the material wealth of a person, it is evaluated by quality, time and labor costs in its manufacture. It turns out that each product has an exchange value. The resulting disagreements in the process of commodity exchange became the catalyst for the allocation of a special category of equivalent. It was there that they began to express the estimated value of the products of production. This special category was money, the origin of which is inextricably linked with the development of barter exchange and society as a whole.

Evolutionary theory runs counter torationalist and proves that the state and the people's conscious understanding did not have a proper influence on the origin of money. In short, the created product already has a price, which is formed on the basis of yesterday's demand criterion. Up to this point, any thing does not carry monetary functions.

Functions of payment means

The value of goods express money. The origin, essence and functions of their important to know. Tasks of payment means are reduced to the following items:

1. Measure of value. The main function that confirms the value of money as a global value equivalent, which is expressed in the price of goods.
2. The means of circulation. Responsible for the process of the movement of products in the market according to the scheme: commodity-money-commodity.
3. Instrument of payment. Money is an intermediary in the case of the exchange of goods, because as a result of the transaction, the calculation is not always made in cash. Often, firms use borrowed funds or loans, as well as a deferred payment. The funds paid after a certain period serve as the final stage of the transaction.
4. Means of savings, investments and savings. Money, the origin of which is associated with commodity exchange, is a means for acquiring additional benefits and improving the quality of life. Therefore, a lot of people are busy today.
5. World money. They serve as an international means of payment and expression of public wealth. Earlier this role was played by gold coins, but today also foreign currency, and the reserve share in the IMF, and special drawing rights.

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