File:Exchange Money Conversion to Foreign Currency.jpg

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Money is a specific product, which has the universal equivalent value to other goods or services. Usually, money is a product with high liquidity, that is the product that is most easily exchanged for another product (for example, often such product was cattle ). In addition to measures of value for other goods, money is a medium of exchange (mediator in the exchange ). Furthermore, the role of money can perform different things , other property rights, obligations and liabilities as proprietary systems.

Tool for treasures . If in a natural money to maintain the balance between cash and marketable weight needed to reduce the amount of money in circulation, they began to be deposited in the form of treasure . Treasures are different from savings that savings are a form of accumulation of funds for a specific purpose, at the desired size, or at the right time they spent. Treasures do without a specific purpose. The main reason for their formation - the inability (or unwillingness) of the effective use of all cash. Treasures are beginning to spend when the need of the economy in the money supply increases. In modern conditions, the role of money symbolic treasures in the regulation of the money supply is low.

Credit money - is the right to claim in the future with regard to natural or legal persons, specially designed debt, usually in the form of transferred securities that can be used to purchase goods (services) or to pay their own debts. Payment on such debt is usually done at a certain time, though there are options when the payment is made ​​at any time upon request. Lending money to bear the risk of default requirements.

Money market is a system of economic relations on the provision of funds for up to one year. The system of economic relations on the provision of funds for a period exceeding one year is called the capital market. Money market, along with the capital market is part of a general financial categories - financial market.

Participants in the money market is the one part of the person providing the money ( creditors ), and on the other hand - people borrowing money for certain conditions ( borrowers ). One of the categories of market participants are financial intermediaries . Provision of funds possible without financial intermediaries.

Interests of the participants in the money market are receiving income from transactions with various financial instruments of the money market. Lenders receive income in the form of interest on the transferred amount. Borrowers receive income in the form of additional profits derived from the use of the borrowed funds. Financial intermediaries receive income in the form of commission or interest-rate attraction and accommodation facilities.

International Finance - a concept characterized by a set of international financial resources in their movement. Globalization - the growth of world trade, the scale and specialization of production, the development of the international flow of capital , cross-border movement of goods , services and people - led to the development of international finance, the emergence of global financial markets , international financial corporations, the complexity of intergovernmental fiscal relations and other aspects of international finance.

International finance reflect the state and development of the ever-changing international monetary system, the state and changes in the balance of payments of individual countries, international financial markets, international financial corporations The main participants are the world's financial system: banks, multinational corporations , portfolio investors and international official borrowers. Global financial operations have become a dynamic force that have a significant impact on the financial systems of individual countries, and in concert with the global economic environment - a powerful tool for integration of economic and financial markets, countries and regions. They also contribute to the international spread of the crisis.

Foreign Exchange Market ( English. Foreign exchange Market, currency Market ) - is a system of stable economic and institutional relationships that arise in operations on purchase and / or sale of foreign currency , payment documents in foreign currencies, as well as operations on the movement of capital of foreign investors.

In the foreign exchange market is coordinating the interests of investors, buyers and sellers of currency values ​​. Western economists have characterized the foreign exchange market with the organizational and technical point of view as a total network of modern means of communication between the national and foreign banks and brokerage firms.

Authorized banks may buy or sell foreign currency concluding the transactions of its sales to the establishment of the delivery of these transactions no later than the second business banking day from the date of detention. This type of transaction is called a spot (cash) currency transaction and ongoing operations are performed on it on a "spot" with the calculation by the spot price . Called "spot foreign exchange transactions" combined three types of transactions on purchase and sale of foreign currency, require delivery of funds.