Economic relations regarding the formation, distribution and use of funds of monetary resources. Socio-economic essence and functions of finance Define “financial discipline”

The financial relations that are formed between the subjects of the economic process are the main object of financial management. The efforts of financial managers are aimed at their optimization. Analysis of the features of financial relations is important for financial management. In the theory of finance, there are several groups of financial relations that entities enter into in the process of economic activity regarding the formation, distribution and use of financial resources. Financial relations with public authorities, suppliers and customers, banks, insurance organizations, employees of enterprises, owners are shown in fig. 1.3.
There are external and internal types of financial relations (Table 1.3). External financial relations imply that the organization - a member of the group interacts with:
public authorities represented by tax, customs, law enforcement, antimonopoly, judicial authorities, securities market control authorities, federal, regional and local authorities;
credit and insurance organizations, investment and non-state pension funds and other financial institutions (not members of the group);
suppliers, customers, buyers, sellers regarding the production and sale of products and services;
non-profit organizations, etc. Internal financial relations assume that:
organizations interact with shareholders;
organizations through managers enter into financial relations with employees of the labor collective;
subsidiaries and dependent organizations interact with the parent organization, etc.
As a result of the interaction of owners, top managers, goals are formulated, development strategies and tactics are determined, mechanisms and management tools are determined. All this is present in all types of financial relations. Financial relations are regulated by the norms of the current legislation, internal rules and regulations.

When building financial relations, conflicts of interest may arise: the founders among themselves over shares in the authorized capital, and therefore, in the degree of influence on business development; owners managers regarding the amount of contributions to the authorized capital; senior management staff regarding the amount of wages, working conditions and their protection; shareholders and labor collective on profit distribution and dividend policy; organizations-participants among themselves concerning distribution of financial resources, funds.

Table 1.3
Characteristics of financial relations by types and subjects

Types of financial relations by subjects	Internal types of financial relations	External types of financial relations	Subjects as a whole	Subjects as a separate participant
With owners (shareholders)	+	-	+	+
With government authorities	-	+	-	+
with financial institutions	+	+	+	+
With suppliers, customers	+	+	+	+
With employees of organizations	+	-	+	+
Within the group, between structural units	+	-	-	+

The interest of subjects can be expressed through a system of relative indicators as the ratio of two, four or more absolute values. Such indicators are called financial ratios. By their nature, they are quite stable, their change has a special informative value. Each of the listed groups of financial relations has its own specifics and scope. All of them are bilateral in nature and have a material basis (cash flow).
For owners, profitability ratios are the most important, as they show how quickly their capital is growing. Potential owners receive information about the organization on the stock market using market activity coefficients, compare them with similar parameters for other organizations and decide on the appropriateness of investing.

Managers are interested in business activity, which characterizes the measure of their professional skills, but since they are the link between all interested parties, naturally, all indicators and trends in their change are in their field of vision.
Lenders are primarily interested in the ability of the organization to settle on short-term obligations (liquidity indicators) and long-term obligations (sustainability indicators).
The government and the public have specific interests that often go beyond financial management. This is the ability to pay wages in full and on time, to ensure employment and the rights of workers, to be a reliable taxpayer, to guarantee the environmental safety of activities, etc.

Thus, there are many relative indicators characterizing the financial relations of subjects. The main ones can be combined into blocks that are homogeneous in terms of economic content (Fig. 1.4).

More on topic 1.5. Types and content of financial relations:

2. The concept and content of financial legal relations. Their classification.
Chapter 14
6.2. Specifics of financial relations of non-profit organizations
Financial relations of organizations. Functions of finance organizations.
2. The essence and content of financial management 2. 1. Financial relations of organizations and the essence of financial management

The main goal of profit management is to maximize the wealth of owners in the current and future periods. It means:

ensuring maximum profit corresponding to the resources of the organization and market conditions;

ensuring optimal proportionality between the level of generated profit and the acceptable level of risk;

ensuring high quality of generated profit;

ensuring payment of the required level of return on invested capital to the owners of the company;

ensuring sufficient investment from profits in accordance with the objectives of business development ;

ensuring the growth of the market value of the organization;

ensuring the effectiveness of programs for the participation of personnel in the distribution of profits.

The multi-channel significance of profit increased with the transition of the state economy to the foundations of a market economy. The fact is that a joint-stock, leased, private and other form of ownership enterprise, having received financial independence and independence, has the right to decide for what purposes and in what amounts to direct the profit left after paying taxes to the budget and other obligatory payments and deductions. The desire to make a profit directs commodity producers to increase the volume of production needed by the consumer, reduce production costs. With developed competition, this achieves not only the goal of entrepreneurship, but also the satisfaction of social needs. For the entrepreneur, profit is a signal that indicates where the greatest increase in value can be achieved, creates an incentive to invest in these areas. In the conditions of market relations, a profit orientation is a prerequisite for the existence of entrepreneurial activity, a criterion for choosing the optimal directions and methods of this activity, an indicator of the commercial success achieved by an enterprise.

Numerous studies on the subject of studying the correspondence of profit calculated in accounting to its economic content have led to a distinction between such concepts as “accounting” and “economic” profit. Profit as an economic category reflects the net income created in the sphere of material production in the process of entrepreneurial activity. From an economic point of view, profit is the difference between cash receipts and payments, and from an economic point of view, between the property state of the enterprise at the end and beginning of the period. Profit calculated for accounting purposes does not reflect the actual result of economic activity, which leads to a distinction between the concepts of accounting and economic profit. The first is the result of the sale of goods and services, the second is the result of the work of capital. Summarizing the above, it can be noted that profit is one of the main financial indicators of the plan and assessment of the economic activity of enterprises. Profits are used to finance activities for the scientific, technical and socio-economic development of enterprises. Increase the payroll of their employees. It is not only a source of ensuring the intra-economic needs of enterprises, but is becoming increasingly important in the formation of budgetary resources, extra-budgetary and charitable funds. The main goal of profit management is to maximize the wealth of owners in the current and future periods.

1.2 Formation of profit of the enterprise

Profit is the difference between the total amount of income and expenses for the production and sale of products, taking into account losses from various business operations. Thus, profit is formed as a result of the interaction of many components, both positive and negative.

Profit provides the needs of the enterprise itself and the state as a whole. Therefore, first of all, it is important to determine the composition of the profit of the enterprise. The total profit of the enterprise is the gross income. The amount of gross income is influenced by a combination of many factors that depend and do not depend on entrepreneurial activity.

Important factors in the growth of profits, depending on the activities of enterprises, are the growth in the volume of products manufactured in accordance with contractual terms, the reduction in its cost, the improvement in the quality of the assortment, the increase in the efficiency of the use of production assets, and the growth of labor productivity.

Factors that do not depend on the activities of the enterprise include changes in state regulated prices for products sold, the impact of natural, geographical, transport and technical conditions on the production and sale of products, the level of taxes and payments, and the demand of the population.

Profit (loss) from the sale of products (works, services) is determined as the difference between the proceeds from the sale of products (works, services) without value added tax and excise taxes and production and sales costs included in the cost of products (works, services).

It follows from the above definition that its origin is associated with the receipt of gross income by an enterprise from the sale of its products (works, services) at prices that are formed on the basis of supply and demand. Gross income of the enterprise - proceeds from the sale of products (works, services) minus material costs - is a form of net production of the enterprise, including wages and profits. The connection between them is shown in Figure 1.1.

Figure 1.1 - Relationship between wages and profits

The labor collective is interested both in raising wages and in the growth of profits, since the latter, in a competitive environment, is a source of not only survival, but also the expansion of production, and, consequently, the growth of the well-being of the employees of the enterprise, their standard of living. It also follows from this that the mass of profit and gross income characterizes nothing more than the size of the effect obtained, as a result of the production and economic activities of the enterprise.

In the conditions of market relations, an enterprise should strive, if not to obtain maximum profit, then at least to that amount of profit that would allow it not only to firmly maintain its position in the market for its goods and services, but also to ensure dynamic development its production in a competitive environment. Ultimately, this involves knowing the sources of profit generation and finding methods for their best use. Financial results on other sales show income (expenses) from operations related to the movement of property, write-off of fixed assets from the balance sheet due to obsolescence, leasing property, cancellation of contracts, termination of production, etc. Other non-operating income and expenses include financial results, not reflected in the previous income components. Their composition is quite specific: these are either random, unforeseen amounts, or fines received and paid related to the violation of contractual obligations. In other words, non-operating income compensates the enterprise for the profit that could be received from the main activity if all contractual obligations and payment terms were observed by its partners.

Profit from sales, as a rule, is the main component of the profit of the reporting period. This is the difference between sales revenue and the cost of products sold, i.e. cost, selling and administrative expenses. It currently accounts for 90-95% of the total profit before tax. At many enterprises, it is the only source of profit before tax.

Figure 1.2 - The mechanism for the formation of profit indicators.

Due to the fact that the vast majority of gross income (90-95%) enterprises receive from the sale of marketable products, this part of the income should be given the main attention. The factors noted above, dependent and independent of the activities of the enterprise, affect mainly the income from sales of products. The main of these factors are subject to detailed study and analysis.

An important role in profit management is occupied by the system “Relationship between costs, sales volume and profit” (CRM) or break-even analysis. This method is also called marginal analysis, or income assistance analysis. The methodology is based on the division of production and marketing costs, depending on the change in production volume, into variable and fixed costs and the use of categories of marginal income.

Analyzing figure 1.2 - the formation of profit indicators, we can give the following definitions of profit indicators.

Gross profit is the difference between revenue (net) and direct production costs for products sold. Profit from the sale of products - the difference between the amount of gross profit and fixed costs of the reporting period. From figure 1.2 it follows that profit before tax includes financial results from the sale of products, works, services; income and expenses from financial and investment activities; non-operating income and expenses. In other words, profit before tax ~ this is the final financial result reflected in the balance sheet of the enterprise and identified on the basis of the accounting of all business operations of the enterprise and the assessment of balance sheet items. It is used to evaluate production efficiency, identify growth dynamics and determine overall profitability, as well as for tax purposes. And taxable profit is the difference between profit before tax and the amount of profit taxed on income. And finally, net profit - profit remaining at the disposal of the enterprise after paying all taxes, economic sanctions and contributions to charitable funds and used for the development of production and for social needs.

Profit is formed in the process of economic activity of the organization, this is reflected in accounting and reporting.

Based on the above, we can conclude that profit is formed in the course of the organization's economic activities, this is reflected in accounting and reporting.

Profit provides the needs of the enterprise itself and the state as a whole. Therefore, first of all, it is important to determine the composition of the profit of the enterprise. Gross profit is the difference between revenue and direct production costs for products sold. Profit from the sale of products - the difference between the amount of gross profit and constant expenses of the reporting period. Profit before tax includes financial results from the sale of products, works, services; income and expenses from financial and investment activities; non-operating income and expenses

public policy;

government spending;

Finance;

33. A course designed for the long term and providing for the solution of large-scale problems of the economy and social development of society is:

Financial strategy;

financial mechanism;

financial policy;

financial tactics;

financial planning.

34. What function of taxes ensures the flow of funds to the state budget:

regulatory;

fiscal;

redistribution;

all answers are correct;

there is no correct answer.

35. Determine the structure of the gross social product:

there is no correct answer.

36. The totality of economic relations that arise in the process of distribution and redistribution of the value of a social product, as a result of which monetary incomes, savings and funds are formed and used by participants in production to meet their various needs, is:

Finance;

redistribution;

there is no correct answer.

37. To which link of the financial system do finances of housing and communal services belong?

public finance;

Finance of the non-productive sphere;

finance of the sphere of material production;

household finances;

there is no correct answer.

38. Choose the right financial bodies entrusted with strategic financial management:

Parliament, President, Government, Ministry of Finance;

Tax Committee;

financial department;

Treasury Department;

banking institutions.

39. The main sources of financial resources are:

budget resources;

bank funds;

Cash savings, income from foreign economic activity ;

there is no correct answer.

40. What objective circumstances cause the need for finance?

the needs of social development;

redistribution of financial relations;

creation of a monetary fund;

rational use of monetary funds;

there is no correct answer.

41. What is the essence of the extrapolation method as a method of financial planning?

consistency of expenses with the sources of their coverage;

Determination of financial indicators based on the establishment of their dynamics;

use of computers for financial forecasts;

widespread use of economic and mathematical models;

establishment of norms and standards.

42. Define “financial discipline”:

These are the order and conduct of the financial economy, compliance with and establishment of norms;

the monetary expression of that part of the material resources, which the society - for the final use;

these are enterprises, organizations formed by the state, monetary accumulations and monetary funds in the distribution of national income;

is the movement of financial resources;

it is a solution to the problems of the formation and effective use of a decentralized fund.

43. What are the 3 types of financial policy:

Centralism, democracy, regionalism;

functional, national, unity;

regulatory, classical, planning-directive;

distributive, reproductive, primary;

there is no correct answer.

44. Calculation-justified value of costs or distribution of resources is:

alimony;

Regulations;

45. Define financial policy:

homogeneous economic relations that characterize a certain side of economic life and are presented in an abstract, generalized form;

A set of targeted activities carried out by the state in the field of finance to carry out its functions and tasks;

economic relations associated with the formation, distribution and use of centralized and decentralized funds of funds in order to perform the functions and tasks of the state;

one of the economic categories, the development of which is associated with commodity-money relations and the existence of the state;

a system of types and forms, methods of organization, planning and financial management.

46. The term “fiscal policy” in Western theoretical concepts means:

A comprehensive concept of the state fiscal policy and the mechanism for its implementation in economic processes;

a set of relations on the basis of which monetary funds are formed;

rational use of financial resources;

all answers are correct;

there is no correct answer.

47. The element of financial management, which means the coherence of all levels of management, is:

financial information

financial organization

financial regulation

financial control

financial planning

"State budget" - The need for state intervention in the economy is due to: 2. The state budget as a special form of public finance. The concept of the state. Federal budget revenues in 2007 - 23.6% of GDP. What is meant by finance and the financial system? What are the types of budget deficit? 1. Finance and financial system: essence and functions.

"State budget" - 5. Budget deficit (budget deficit) - the excess of spending over income. Types of taxes. Budget spending. 7. 8. Budget revenues. 6. Budget balance. budget process. Ministry of Finance of Russia, Moscow. Russia: budget balance (in % of GDP). Budget functions. Redistribution of income in accordance with the objectives of state policy.

"Budget execution" - Internal audit is carried out by government services (Ministry of Finance, Treasury, main managers of budgetary funds). The draft budget is based on the president's budget message. Consideration by legislators of the draft budget begins in parliamentary commissions even before the start of official hearings.

"Distribution of budget appropriations" - 23.08.201106.10.2009. How to indicate the codes of state programs. FTP. Preparation of the analytical distribution - background.

"Budget system of the Russian Federation" - B. regions. Types of social insurance: Regional. Federal b. B. subjects. The main elements of the funds: The budget system of the Russian Federation is based on the following principles: Budgets: 1. Federal 2. Regional 3. Local. State device. Social Security. According to the methods of conducting: 1. voluntary 2. forced.

"Budget system" - The budget system of the Russian Federation. The principle of budget reliability. Transfers, subventions. Regional budget. Article 14 of the Tax Code of the Russian Federation. The principle of publicity. local budget. Article 15 of the Tax Code of the Russian Federation. households and businesses. The principle of equality of budgetary rights of subjects of the Russian Federation, municipalities. Federal budget. Principles of the Budgetary system of the Russian Federation.

There are 13 presentations in total in the topic

For the emergence finance as a sphere of economic relations, the emergence and coincidence in time at a certain historical stage of a whole complex of conditions (or prerequisites) is necessary, such as:

education and recognition of individuals for goods, services, land, etc.;
the established system of legal norms in terms of property relations;
strengthening the state as a spokesman for the interests of the whole society, acquiring the status of an owner by the state;
the emergence of socially diverse groups of the population.

All these conditions arise under one common premise: a sufficiently high level of production, increasing its efficiency, growing and exceeding the limits necessary for biological survival.

The formation, distribution and use of cash income is the main condition for the emergence of finance.

Financial interests are the interests of the owners of cash income.

For the emergence of finance, a high level of development of the money economy is also necessary, a constant circulation of money on a large scale, the formation and use of the main functions of money. Financeis the movement of money. Financial relations always affect property relations. This is not only monetary relations, but also property relations. The subject of economic relations must always be the owner. It is by distributing and using the money income, of which he is the owner, that each participant in economic relations can realize his interests.

Financial resources

No serious economic or political decision can be made without a preliminary assessment of the amount of money income required for this. The distribution and accumulation of cash income acquire a target character. The concept of "financial resources" appears. Being money incomes accumulated and distributed for specific purposes, financial resources are used for various social, economic, scientific, cultural, political and other purposes (Fig. 18).

Financial resources- this is the accumulated income intended for specific needs.

Rice. 18. Main directions of use of financial resources

Financial resources serve all stages of the movement of cash income from their formation to use.

Since finances are conditioned by the movement of cash income, the patterns of their movement affect finances. Incomes usually go through three stages (stages) in their circulation (Fig. 19):

Rice. 19. Stages of the movement of cash income (finance)

Finance, as we see, is related to all stages of the formation, distribution and use of cash income. Primary Income are formed as a result of the sale and distribution of proceeds from the sale of goods and services. Since the production process, as a rule, is continuous, it is necessary to allocate part of the proceeds at the stage of selling goods to ensure the continuity of the production process.

primary income is formed as a result of expanded commodity production and is serviced by finance.

Rice. 20. The process of expanded reproduction

Primary distribution is the formation of primary income based on gross proceeds.

The secondary distribution of cash income (redistribution) can occur in several stages, that is, it is of a multiple nature.

As can be seen from the schematic representation of the abstract production process (Fig. 20), any production ends with the primary distribution of money income, without which further economic development is impossible. And the distribution of money income ( D") is financed. The allocation of financial resources for the expansion of production takes the following forms: payment of current material costs, depreciation of equipment, rent, interest on credit, wages of workers employed in this production. After the primary distribution of monetary income, the processes of redistribution begin, i.e., the formation of secondary income. First of all, these are taxes, contributions to insurance funds, contributions to social, cultural and other organizations.

Last stage distribution and redistribution of income - their implementation. Realizable income called final. Part of the final income may not be realized, but directed to accumulation and savings. Nevertheless, there is the following financial equality, which is not violated under any circumstances:

ΣA = ΣB + ΣC,

A- primary income;
IN- final income;
WITH- Savings and savings.

The distribution process is influenced not only by finances, but also by prices.

Since the process of realizing any goods (goods, services, etc.) into cash income is carried out at certain prices, then price dynamics has an independent effect on the distribution process. The more prices change (both upward and downward), the more money income fluctuates. These shifts are especially sharp in conditions of inflation.

Financial resources as part of cash income appear in various forms. For the real sector of the economy (production), this is part of the profit, for the state budget - the entire amount of its revenue, for the family - all the income of its members, etc.

Financial resources- this is the part of the funds that can be used by their owner for any purpose at his discretion.

The process of distribution and redistribution of financial resources

Financial resources are offered on the market by a large number of business entities and the population. It is clear that potential users (consumers) of these funds are not able to independently establish business relations with every economic entity, with every citizen. In this regard, the problem arises of combining disparate savings into significant amounts of financial resources that can be offered for use by a large potential investor.

This problem is solved financial intermediaries(banks, investment and mutual funds, investment companies, savings associations and
etc.), which accumulate free resources, primarily of the population, and pay interest on these resources. The attracted resources are provided by financial intermediaries as loans or placed in securities. Their income consists of the difference between the interest paid on the attracted resources and the interest received on the resources provided.

Owners of cash savings can transfer their funds to investment companies, or they can directly acquire industrial corporations. But in the second case, they will face intermediaries - dealers And brokers, which are professional participants in financial markets. Dealers carry out operations independently, on their own behalf; brokers act only on behalf of clients and on their behalf.

Timely financial market offers potential investors wide opportunities for investing funds by acquiring monetary obligations of a wide range of business entities. These liabilities are called financial instruments. These include: IOUs, futures contracts, etc. A variety of financial instruments allows owners of funds to diversify their investment portfolio, that is, invest their savings in the obligations of different companies and banks. These obligations will have a different yield, but also a different degree of riskiness. If a company fails, investments in other companies will continue. Diversification of the investment portfolio is carried out according to the principle: "you can not put all your eggs in one basket."

Financial relations as a sphere of economic activity

financial relations- these are relations associated with the distribution, redistribution and use of cash income.

The phenomenon of financial relations as a sphere of economic relations in society arises at the stage of distribution of primary income (Fig. 21).

Rice. 21. Financial relations at the stage of distribution of primary income

Financial relations, arising in connection with monetary and serving the circulation of cash income, concern almost all individuals and legal entities. Main participants in financial relations are producers of any products (real sector of the economy); budgetary and non-profit organizations; the population, the state, banks and special credit and financial institutions. In the course of its development, financial relations give rise to credit and exist with them in close relationship (Fig. 22).

Credit relations is part of the financial relationship. Both of them are the result of monetary relations.

Rice. 22. Place of credit and financial relations in the structure of economic relations

Credit relations arise in connection with the provision by one entity to another (individuals and / or legal entities) of money on the terms urgency, return, payment.

The main difference between financial and credit relations is the repayment of funds provided on the terms of urgency, repayment and payment.

Usually isolated three stages of income movement, reflecting the formation of primary, secondary and final income.

Primary Income are formed as a result of distribution (works, services). The amount of proceeds is divided into a compensation fund for material costs incurred in the production process (the cost of raw materials and materials, equipment, rent), the employee and the owner of the means of production. Thus, during the primary distribution, incomes of owners are formed. In addition, the following circumstance should be taken into account: indirect taxes established by the state are included in primary income. Therefore, at this stage, state revenues are partially formed.

At the second stage from primary income direct taxes are paid, insurance payments are paid, assistance is provided to the disabled. From the newly created funds of funds, in particular, from various levels of government, funds are paid, which are the costs of non-material workers, doctors, teachers, notaries, employees, military, etc.

As a result of this process, a new income structure is formed. It is made up of secondary incomes formed during the redistribution of primary incomes.

But doctors, teachers, employees, in turn, pay taxes and make insurance premiums. These taxes and contributions form funds earmarked for certain payments. These payments may generate tertiary income. It is almost impossible to trace the chain of their formation. The movement of these incomes is a very complex process.

The result of this process, its third and final stage, is the formation of final incomes. They are used to purchase goods and services. A certain part of the income is saved.

The amount of primary income for a certain period is necessarily equal to the sum of final income plus savings. The distribution and redistribution of income means the formation of their new structure. Moreover, this structure reflects economic relations (connections) between economic structures and the state.

At each stage of income generation, funds of funds, i.e. finances, are formed. Consequently, it is finance that mediates the processes of distribution and redistribution of income.

The result of the functioning of the financial system is a changed structure of income.

The distribution process of added(newly created) cost through is shown in Fig. 1. As can be seen from fig. 1, as a result of the distribution of the primary incomes of owners (entrepreneurs and workers), the incomes of workers in the non-material sphere are formed. However, it should be taken into account that in reality the distribution processes are much more complicated than it is shown in Fig. 1. Part of the income of workers in the material sphere is distributed in favor of workers in the non-material sphere directly through the consumption by the former of services provided by the latter. This is how the income of lawyers, notaries, security guards, etc. is formed. In turn, they pay taxes to the budgets involved in the subsequent redistribution of income.

Finance as monetary relations arise at the stage of distribution. But they are the most important link in everything and have a strong influence on it.

Rice. 1. Distribution of value added through the financial system

control function

control function consists in constant monitoring of the completeness, correctness and timeliness of receipt of income and the implementation of expenditures from all levels and. This function is manifested in any financial transaction. All these operations must not only be economically viable, but must also comply with applicable legal regulations. The control function of finance is expressed in the formation of funds of funds (budgets and off-budget funds) in accordance with the proclaimed goals and in accordance with the standards established by the legislative power. This function involves not only monitoring the processes taking place in the financial sector, but their timely adjustment in accordance with the norms of the current legislation.

The practical expression of the control function of finance is the system. This control ensures the validity of the formation of revenues of the budget system and the spending of budgets and extra-budgetary funds. Financial control is divided into preliminary, current and subsequent. Preliminary control is carried out at the stage of developing forecasts of budget revenues and expenditures and preparing draft budgets. Its purpose is to ensure the correctness of budget figures. Current control is responsible for the timeliness and completeness of the collection of planned revenues and the targeted spending of funds. Subsequent control is aimed at checking the reporting data about.

Stimulating function

Stimulating function finance is associated with the impact on the processes occurring in the real economy. Thus, during the formation of budget revenues, tax incentives for certain industries can be provided. The purpose of these incentives is to accelerate the rate of growth of technologically advanced products. In addition, the budgets provide for expenditures that can ensure the structural restructuring of the economy through financial support for science-intensive technologies and the most competitive industries.

Finance, understood in the broad sense of the word, includes all monetary funds, including loans. Therefore, credit relations are part of finance. is the movement of the loan fund.

You can also define a loan as a system of economic relations regarding the transfer of valuables (including money) from one owner to another for temporary use. Credit relations have their own specifics. The loan is associated with the transfer of the fund of funds for temporary use on the terms of repayment, urgency, payment, security. These conditions distinguish credit relations from other financial relations.