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What are the paper bills and coins that a country actually circulates called

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Currency is your answer!

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User Elserj
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Bills and coins that a country actually circulates is called circulation currency. This is money that is used to conduct transactions between consumers and businesses for goods and services. Money that is kept in a bank and in long term investments are not a part of circulation currency because it cannot directly be used for day to day transactions. 
User Ryaner
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