Cash

Cash plays a major role in the economy of any country. All economic and business entities regularly conduct transactions and make transactions using cashless and cash funds. That is, it is a tool that allows to develop economic relations and expand to enterprises.

If we talk about this concept at the scale of a separate business unit, the enterprise's cash assets include cash and cash on the various accounts of the firm in the bank, and money related to decentralized reserves that help improve the company's work and warn against losses in unforeseen situations.

In addition, monetary assets are the most important indicator characterizing the effectiveness of all activities of the enterprise. After all, they allow you to calculate the indicators of profitability, liquidity and solvency. A large amount of money resources in the organization indicates a high degree of its liquidity, and therefore, the ability to timely pay off counterparties for obligations.

Thus, we can say that the money should be carefully planned. Their rational distribution by funds and competent use in financial, production and investment activities provides a stable income for any enterprise. The main task of a specialist is the organization of activities, in which timely payment of debts of debtors will ensure repayment of the debt of the business entity to creditors.

Cash on a national scale is also an important characteristic of the country's economic situation in the international arena. The government together with the national bank regulates the amount of money held by the population and in the calculations of economic entities. The amount of cash depends on demand and supply in the market. If the situation creates a significant increase in supply over demand, then automatically increases the rate of inflation. The uncontrolled nature of this process on the part of regulators can lead to the destruction of the banking system and the strongest crisis in the economy.

Modern money means are mostly signs of value, which, in turn, are divided into loan money and paper money . Under the signs of value means a currency whose nominal value is much lower than the funds spent for its production. That is, such money does not have real security, and their treatment is based on public confidence in the state.

Previously, money could be called only coins made of gold and silver, but they are inconvenient to use, therefore, banknotes were introduced. Indeed, paper money is much more convenient. They are easier, even a larger amount can be transferred without much difficulty and discomfort. Since the inception of credit relations, credit money has developed. Currently, they are the main means of payment in the calculations between different counterparties. Bills and checks are considered to be the most common, since they have been functioning successfully for many years. This means of payment is a security, the possession of which allows you to receive the specified amount after a specified period of time.

Recently, settlements are actively developing with the help of bank cards, and their owners can be both physical and legal entities. Allocate debit, requiring the preliminary deposit of funds to the client's settlement account , and credit cards that allow the bank to take an amount within the limit on debt. The benefits of such cards are undeniable, it is really a convenient and easy to use means of calculation. The only drawback may be the need for special equipment, which in our country can not be found everywhere.