Liquidity cycle

Corporate working capital is always in a sport state enterprise labor money to buy objects, through the production process, into a product, the product sold, turned into money, that is, continue to enter circulation from production areas, It also returns to the circulation field from the production field, so that the round-trip movement is called the circulation of liquidity. The circulation of funds is not a simple and unchanging cycle, but under normal circumstances, it will proliferate after a circular currency.

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