Finance and money: Virtual and empirical reality

Subject. The article considers finance, financial activity, and money as economic categories. Objectives. The aim is to identify and clearly delineate the spheres of functioning of finance and money in the economic system. Methods. The study employs systems and interdisciplinary approaches to considering the finance and financial activity as a subject of scientific analysis. Results. The paper offers an interdisciplinary and systemic concept of representing finance and financial activity, substantiates a clear boundary between the sphere of functioning of money and finance: the sphere of functioning of finance is a virtual reality, while the sphere of functioning of money is empirical reality. It shows that money is secondary to finance and serves as a carrier, i.e. an instrument that transfers value in accordance with obligations of economic agents. Conclusions. The study proposes a universal concept of representing finance, financial activity, and the function of money. Finance have a cognitive nature, the property of continuity of virtual existence, as opposed to conventional view, and can be defined as a virtual monetary assessment of the cost of resources (property) involved in economic turnover, resulting in the distribution and redistribution of resources (value). Money is a carrier of finance, acting as a tool for generating cash flows in accordance with obligations and wishes of economic agents, resulting in the distribution or redistribution of the cost of agent resources, or between economic agents.