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Currency in Circulation

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Currency in circulation
Paper money, coins, and demand deposits that constitute all the money circulating in the economy.

Currency in Circulation
The cash, coins, and demand deposits that constitute the money in an economy that may be easily exchanged for goods and services. The currency in circulation is one of the most liquid measurements of the money supply. See also: M0, M1.


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As times moved forward, the amount of gold that was required to back the currency dwindled so less and less gold was stored to back all the paper currency in circulation.
A large amount of currency in circulation can lower the value of a currency.
M1B includes currency in circulation, checking deposit, passbook deposit, and passbook savings deposit, while M2 equals M1B plus time deposit, time savings deposit, and transference from postal deposit.
 
 
 
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