Rubles, dollars, marks, lira, francs - all these names are united by one powerful economic concept, they all underlie financial relations and are known as "money". Money has very specific economic and macroeconomic functions. They are also a political regulator.
Money is a kind of equivalent that determines the special proportions in which goods can be compared or correlated, embodies the labor expended to obtain a particular product in any area of the globe. Bones, shells, skins, gold, silver - at different times the role of money was played by completely different, but, of course, significant objects for society.
Money determines the measure of a certain value of the goods and is a special means of payment used not only in commodity circulation.
Money functionality
Money is a convenient medium of circulation that allows society to avoid a return to primitive barter exchange, which naturally lowers the value of all kinds of goods.
One of the most important and used functions of money is the well-known function of accumulation, which makes it possible to use the absolute liquidity of money in the event of arrears or other inevitable and urgent payments. Within the framework of such a concept as world money, the most important financial transactions are carried out between residents of different countries. They serve as the main source of formation of foreign exchange reserves, a means of payment in the implementation of large-scale economic transactions between friendly countries, or simply for the local purchase of goods outside the home country of the purchaser.
Quality-quantity
It is impossible not to note the role that money plays in a modern civilized society. Exercising control over the quality and quantity of work performed, money serves as the main source of individual income for the majority of ordinary citizens, acts as the main means of payment, regulating the movement of the national product, and is a means for maintaining large-scale state and local family records.
Taxes, loans, all kinds of social benefits - none of the above is complete without the presence of money. History has shown how utopian the idea of rejecting any kind of monetary settlement is.
Money is an economic link that assigns to one or another commodity or product the measure of labor expended on its production, it is through money or individual income that the ability of a particular member of society to satisfy this or that need for a product or, conversely, to limit the measure of its consumption, is determined.
Money, as an important element of human life, is in constant motion and is a powerful engine both for the economy and life of the country as a whole, and for a single individual or family. Having come a long way, money often determines the actions and even the way of life and thinking.
