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circulating capital

noun

  1. the portion of capital goods that consists of goods in process, inventories of finished goods, and raw materials.


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Word History and Origins

Origin of circulating capital1

First recorded in 1770–80
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Example Sentences

Never before has so much idle cash accumulated as in the past decade – and never before has circulating capital failed so miserably to invest in human health and habitat.

“Some banks with ample liquidity have also begun to play a stabilizing role in circulating capital into markets.”

If circulating capital has been changed into fixed capital, its yield will depend upon the price of the particular goods in the production of which it has been made to serve.

When fixed and circulating capital coöperate in production, the latter, because it can be more easily withdrawn, but also more easily replaced, first takes out its own profit, that is the profit usual in the country and leaves all the rest to the former.

That principle is not unconditionally true, even in the case of circulating capital.

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