Financial Operations Study Guides

Financial operations these are operations relating to the creation, collection and implementation of the means of financing necessary for the economy. Any financial transaction is the counterpart of a transaction in goods and services or a distribution operation. These operations constitute a modification of the financial assets of economic agents. Financial operations include: ⮚ National means of payment such as: notes, coins, demand deposits transferable by check or transfer or payment card as well as international means of payment such as currencies. ⮚ Financing instruments: short-term loans, medium and long-term credit. ⮚ Investment instruments: instruments which reserve means of payment in another form. These include savings account, stocks and bonds. ● a share is a participation in the capital of a company, the holder of the share is the owner of part of the capital of the company and is therefore entitled to dividends. ● A bond is a security that represents a loan to a company and carries interest. IV- Measuring economic activity The economic activity of a country is measured using certain instruments called aggregates. These aggregates are synthetic quantities which make it possible to account for the way in which a nation has resources and the way in which its resources are used during a given period, generally a year. The most used aggregates are: GDP, GNP, PNN and PNNcf. IV-3-1 / Definition of aggregates Gross domestic product (GDP):it is a measure of domestic national production that represents the value of goods and services produced during a period. Many economists consider GDP to be the best indicator of a country's wealth. In Tunisia, this statistic is established annually. Its purpose is to summarize the value of economic activity in dinars in a single figure. GDP is broken down into market GDP (GDP Mchd) and non-market GDP (GDP NonMchd). ✔ Mchd GDP corresponds to the added value (VA) of companies. The notion of VA is very important. In fact, when a company carries out a transformation operation, it creates additional wealth which corresponds to the difference between the price of sale of the finished good or service that it sells on the market and the cost of the elements (raw materials, intermediate goods) that it incorporates into the productive process. This additional wealth is called the VA. In other words, we define the VA as being the real wealth created by the company as a result of its productive activity VA = turnover - Ʃ (intermediate consumption) At the macroeconomic level, the total VA produced by all companies constitutes the bulk of gross domestic production. GDP Mchd= GDP = Ʃ VA