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|home Banking Books Money and credit - Ivanov V.M.|
Money and credit - Ivanov V.M.
Determining the number of loan functions and their interpretation depend on methodological approaches to their analysis.
It must be based on the following provisions:
• the function is not unique to the entity and reflects only certain features;
• a function is a specific manifestation of an entity as an integral phenomenon.
As applied to credit, this means that its functions should relate to the credit relationship as a whole, i.e., relate to both its subjects equally, and not to any of them individually. In addition, the functions of credit should characterize the specifics of the manifestation of the essence in all its forms and varieties.
From these positions, the following credit functions are distinguished:
• substitution of cash by credit operations.