Saturday, October 30, 2010

Finance is not money

If I don’t study at Academy of finance, I still think that finance is money. And until I learn finance theory textbook, money theory textbook, I’ve just known that’s not true. I know that many people still confuse as me. To things what I’ve learned, I can show clearly some difference points between finance and money. Hopefully somebody who read this article, will not confuse finance and money.
Talking about money, essence of it is general price level material to exchange goods with all basic functions as measure of value, means of circulation, means of payment, means of storage, means of international exchange and world currency. But finance is movement of money capital with only two functions: means of payment and means of storage, moreover own characteristic of finance in distribution is always associated with creation and use of certain monetary funds. On the other hand, financial relationships isn’t consistent with money relations as a whole, it’s only economic relations in distribution of social wealth under money form.

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