Lecture N2

“Financial system”

Financial system - set of the relations, on the basis of which the appropriate funds of money resources are formed, bodies organizing these relations are used.

The principles of construction of a financial system are:

Ø Combination of centralism and decentralism in organization of financial system. At the centralized management on the part of the state financial bodies, simultaneously large rights and the independence is given to local financial bodies and enterprises and organizations.

Ø Observance of national and regional interests. To ensure national equality in the financial relations and socially acceptable level of development of regions.

Ø The principle of unity of a financial system considers unity of financial policy (uniform basic of legislative and normative acts).

Ø Functional purpose of separate components of a financial system. Each part of finance solves the tasks.