Currency In Circulation

Currency that is physically used to conduct transactions between consumers and businesses rather than stored in a bank, financial institution or central bank. Currency in circulation is part of the overall money supply, with a larger portion of the overall supply being stored in checking and savings accounts.

Currency in circulation can be thought of as "currency in hand", meaning that it is used to buy goods and services. Central banks pay attention to the amount of physical currency in circulation because it is present in the most liquid asset class. The more money that comes out of circulation and into longer-term investments, the less money is available to fund shorter-term consumption - a major component of GDP.


Investment dictionary. . 2012.

Look at other dictionaries:

  • currency in circulation — Paper money, coins, and demand deposits that constitute all the money circulating in the economy. Bloomberg Financial Dictionary …   Financial and business terms

  • currency in circulation — amount of money circulating throughout a country …   English contemporary dictionary

  • Circulation (currency) — The social system in which we live has usually developed to the stage for money to be used as the medium for the exchange of goods and services. Hence the money is an important aspect of the general social or macroeconomics system. To better… …   Wikipedia

  • Currency of Venezuela — This article provides a historical summary of the currency used in Venezuela since the end of the 18th century. For the present currency of Venezuela, see Venezuelan bolívar. Contents 1 Pre independence currency 1.1 Coin 1.1.1 1787 lightweight… …   Wikipedia

  • Currency strap — A stack of $10,000 straps. Note the ABA compliant mustard color. A currency strap, also known as currency band or bill strap is a simple paper device designed to hold a specific denomination and number of banknotes. It can also refer to the… …   Wikipedia

  • Currency of Maldives — Contents 1 History 1.1 Boli 1.2 Dhigu laari 1.3 Loa laari 2 Today …   Wikipedia

  • currency — / kʌrənsɪ/ noun 1. money in coins and notes which is used in a particular country 2. a foreign currency, the currency of another country (NOTE: =Currency has no plural when it refers to the money of one country:… …   Dictionary of banking and finance

  • currency — / kʌrənsɪ/ noun money in coins and notes which is used in a particular country ▪▪▪ ‘…today’s wide daily variations in exchange rates show the instability of a system based on a single currency, namely the dollar’ [Economist] ▪▪▪ ‘…the level of… …   Marketing dictionary in english

  • circulation — /ˌsɜ:kjυ leɪʃ(ə)n/ noun the number of readers of a newspaper or magazine. It is audited and is not the same as ‘readership’. ▪▪▪ ‘…the level of currency in circulation increased to N4.9 billion in the month of August’ [Business Times (Lagos)] …   Marketing dictionary in english

  • Circulation — may refer to: Circulatory system, a biological organ system whose primary function is to move substances to and from cells Circulation (fluid dynamics), the path integral of the fluid velocity around a closed curve Circulation (journal), one of… …   Wikipedia

Share the article and excerpts

Direct link
Do a right-click on the link above
and select “Copy Link”

We are using cookies for the best presentation of our site. Continuing to use this site, you agree with this.