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TeachMeFinance.com - explain Effective circulation historic definition... Effective circulation -- Money in the Treasury and owned by the government and that in circulation and in banks. This is available money that is, money that is in use or can be put in use. Copyright © 2007 by Mark McCracken, All Rights Reserved. TeachMeFinance.com is an informational website, and should not be used as a substitute for professional financial or legal advice. TeachMeFinance.com and its owner recommend consultation with a professional financial advisor prior to any investment or financial decision. Please read our disclaimer.