circulation
sur-kyoo-LAY-shuh-n
/ˌsɜː.kjəˈleɪ.ʃən/
The movement or passing of currency from hand to hand or place to place in an economy.
Specifically refers to physical or digital money actively moving and facilitating commerce.
The story behind the word. Derived from Latin circulus (a small circle). Money travels around in continuous loops from buyers to sellers and back into banks.
Word relationships
- distribution: Distribution focuses on initial delivery; circulation emphasizes continuous hand-to-hand flow.
- hoarding: Hoarding retains cash outside active economic movement.
Commonly confused with
- liquidity: Circulation is the physical flow of money; liquidity is the systemic ease of turning assets into cash.
Word family
- circulate (verb): To move around continuously within a system.
- circulatory (adjective): Relating to continuous movement.
Collocations
- in circulation
- currency in circulation
- withdraw from circulation
- put into circulation
Example sentences
- "The central bank withdrew worn paper bills from circulation and replaced them with fresh polymer banknotes." Currency printing
- "An increase in currency in circulation indicates higher transactional activity across retail businesses." Monetary analysis
Memory hook
CIRCULATION moves money around in a CIRCLE through the market. Money traveling around the circular economy.
When not to use
Do not confuse money circulation with blood circulation in human anatomy without proper context.
Fun facts
- Central banks regularly measure 'M0', which represents the total physical cash in active circulation.
Explore more words
reach, distribution, throughput, periodic, publication, journal
Also appears in
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