Money and Finance. Creation features and functions

Scientific Study from the year 2012 in the subject Economics - Macro-economics general University of Novi Sad course: Economics language: English abstract: Back in the eighties some of the most prominent Yugoslavian economists confided/complained to me that as non-monetarians they can hardly understand and follow discussions and articles regarding monetary and financial topics: that field as they said was somehow abstract imaginary... I assume that for them as well as for many economists from younger generations not to mention non-economists businessmen/practical businessmen politicians etc the World of money and finance is not less abstract and totally transparent even today after the financial revolution happened during the previous three-four decades and after the current global economic crisis if not primarily generated at least emerged from this field. Indeed the contemporary World of finance can hardly be essentially explained and understood if it is observed as an enormous amount of monetary and financial activities which we meet or hear about at every corner: about issuing of money restrictive or expansive monetary policy loans and interests credit cards cheques imballances etc; about numerous accounts at various financial institutional entities local and foreign currency balances; about audits and supervision; about shares majority and minority shareholders; about foreign direct investments... portfolio and greenfield investments; about electronic money and electronic payments; about stock exchange and OTC operations including the electronic forms of trading in securities; about the international financial integration and globalization; and especially about terminology which is still not very much present in our everyday lives such as the industry of pension insurance and some other forms of industrialization savings financial products...; then various kinds of risk management financial hedging financial derivates...; a