Economy

What is circulating? »Its definition and meaning

Anonim

It is considered Circulante to the cash and wire transfers, checks and any means of payment may be used in everyday life to make purchases, sales, exchanges and any exchange of money. The state through the corresponding institutions, for example the Central Bank, the foreign exchange administration commissions and more are in charge of distributing to the general public a series of manifestos in paper money as a representation of the net worth of the country, these bills and metallic coinsare constantly exchanged in society, going from hand to hand through all the cities, shops and establishments of purchase and sale of the country, it is in short, the direct asset of the people, which is available for the customary process of exchange of goods and services for monetary value.

The circulating money is divided into two main types, the one mentioned above, which goes from hand to hand among all the people in the company, and the liquid assets of the companies, also considered circulating since it is about the assets that are directly in investment game, that is, it is the money that enters and leaves the organization in order to be exchanged for merchandise and to carry out all the pertinent process to provide the corresponding service and generate capital. Current cash can be a specific figure, if for any reason this figure is altered or does not meet expectations, the format of these liquid circulating must be reconditioned, taking care not to touch the passive fundwhich is not directly related to the investment process, on the contrary, it supposes a losing administrative fund in case of a new projection of the company and a capital safeguard in case of a problem.

The banking system in the form of a network in different institutions of the country is the one that is responsible for conscientiously distributing the circulating money in society, for this, it not only dismisses cash, it also offers plastic money services, better known as credit cards. credit and debit with which people who have circulating, leave it at the bank and pay at authorized points of sale, assuming at the same time a security measure.