Credit money, their history and types

Money is an integral partfunctioning of any society. The origin of this term is quite interesting. Coining of coins of Ancient Rome was made in a specially designed place for this purpose - the temple of the goddess Juno Moneta, on behalf of which the English word "money" (money) occurs. The development of human civilization entails the development of all spheres of its life, including financial. Ancient equivalent of money can be considered furs and skins of animals, then silver and gold (metal money) entered the turnover, and, finally, paper money. A special type of modern money is credit money, the emergence of which is associated with the rapid development of the banking industry. This money does not have its own value as such and exists only in the form of digital signs certified in one way or another. In other words, it can be said that credit money is a kind of debt obligation, paper value signs that arose on the basis of a loan in return for gold.

Over the course of the whole banking system, credit money has evolved from bills of exchange to credit cards and electronic money.

The first type of this kind of moneymeans in Russia was a bill, which is an ordinary written obligation of the debtor to its creditor. Bank bills are issued, as a rule, only if there is a certain amount of money on the borrower's current account. Treasury bills represent special debt obligations not before the bank, but already before the state and refer to securities issued for a period of 3 months to a year. You can buy treasury bills on the current securities market. Their repayment is carried out by the central banks of the country on behalf of the Ministry of Finance.

At the end of the 17th century a new species appeared in Russiacredit money - banknotes, the right to issue which had only the central bank. The rich gold reserve of the country excluded the possibility of depreciation of this type of cash. Banknotes at any time could be exchanged for gold. The main distinguishing feature of a banknote from a bill is its perpetual existence.

The process of creating commercial banks requiredthe emergence of a new type of cash, they became checks, representing a special type of a bill, a written order of the owner of a certain account for payment to the holder of the amount indicated in it. The check can be issued for both commercial and central bank of the country. The automation of banks and the conduct of cash transactions preceded the appearance of credit cards that came to replace checks issued by banks in the form of a plastic card with a chip on it based on the customer's account.

Credit money and their types were compoundpart of the emergence and development of a system of capitalism, one of the main features of which was the circulation of funds, which caused a number of economically important consequences for the country. The capital circuit ensures a constant flow of money, which is most often realized through lending. The main form of movement of banknotes in this case is credit, the main form of payments - credit money.

Summing up, we can say that creditmonetary funds are inextricably linked with such a phenomenon in the economic life of the country, like capitalism, and have become most widespread with the development of commodity-money relations. Their main distinguishing feature from paper money is in origin. Paper money can be issued only by the Treasury, credit same - commercial and central banks in the form of checks, bills, credit cards, banknotes and electronic money.