The total value of coins and paper currency in circulation amongst the public. The amount of active money fluctuates seasonally, monthly, weekly and daily. In the United States, the Federal Reserve Banks distribute new currency for the US Treasury Department. Banks lend money out to customers which becomes classified as active money once it is actively circulated.

Investopedia Says:
Active money is all the coins and paper currency in the hands of the public. Due to the high demand from abroad, the majority of US cash in circulation is outside of the United States. The variable demand for cash equates to a constantly fluctuating active money total. For example, people typically cash paychecks or withdraw from ATMs over the weekend, so there is more active cash on Monday than on Friday. The public demand for cash declines at times - following the holiday season, for example.

Related Links:
Few organizations can move the market like the Federal Reserve. As an investor, it's important to understand exactly what the Fed does and how it influences the economy. The Federal Reserve: Duties
Learn about the tools the Fed uses to influence interest rates and general economic conditions. Formulating Monetary Policy
From coins to credit, find out how the earliest system of money management started. The Evolution Of Banking
Find out how this institution has stabilized the U.S. economy during economic downturn. How The Federal Reserve Was Formed
Find out what tools the Fed has at its disposal to fight the good fight. The Federal Reserve's Fight Against Recession
The economy has a large impact on the market. Learn how to interpret the most important reports. Economic Indicators: Money Supply


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