According to the evolutional theory we can give the following description of money: Money are the historically developing economic category which expresses the definite economic relations between people in the process of production and distribution.

The essence of money consists of their features:

The universal immediate exchangeability – the possibility to exchange money onto any items of value.

The independent form of exchanged value which is not connected directly with realization of goods. The most significant cases of money usage in this form are credit accommodation, loan indebtedness redemption, financing of various manufacturing and nonmanufacturing costs, etc.

The materialization of the universal labor time is that labor spent on the goods production creates their value which could be changed by means of money.

The generation of money and their usage led to the great consequences. Money generation allowed to overcome the narrow bounds of mutual exchange of separate producers by means of goods and to create conditions for market generation in the operations of which many owners of different goods can take part. It provided the further development of production and improvement of its effectiveness.

The fact of money usage has a considerable importance because thanks to which appeared an opportunity to separate a nonrecurrent process of the goods’ mutual exchange (G-G) on two asynchronically implemented processes:

– the first consists of the good sale (G-M);

– the second consists of the required good purchase in another time and in another place (M-G).

Whereby the usage of money is not implied as a representative in the goods exchange processes. By contrast the money functioning obtains features of an independent process: the commodity producers can save money got from the realization of their goods till the moment of required good purchase. Hence the money savings appeared which could be used as for the goods purchasing and for money loaning and for debts repayment.

As a result of such processes the money flow acquired an independent meaning and separated from the goods flow.

The money functioning got more independence after the full-bodied money substitution which had their own cost onto the monetary units and after the following fixed gold content of the monetary units cancellation. After that the money appeared without their own intrinsic value what allowed to emit the monetary units according to the turnover necessities regardless the gold guarantee availability.

Thanks to cashless settlements generation including payments made on electronic devices the independence of money enhanced widely.

From the great antiquity we can follow the proofs that money performed three basic functions:

1) the standard of value;

2) the instrument of circulation;

3) the store of value.

The first money function is the function of value standard or in simple words of unified product worth measurer for sellers and buyers. In order to define the value of any good it should be compared with some quantity of money. However it must be borne in mind that money don’t make goods comparable because the last are the products of human labor and have homogeneous base of comparison – abstract labor.

The value of good expressed in money is the price of good. The price or monetary commodity form, ideal form with only an idea. Only the good with a relative form of value can have a price. Money do not have price, their cost couldn’t be defined by the money themselves. Instead of price money have a purchasing power expressed in an absolute quantity of goods which could be purchased on them.