In economics, any asset called MONEY must be in circulation That is, when someone buys something with MONEY the buyer has less MONEY and the seller has more MONEY; When the buyer uses Federal Reserve Notes to buy something, the buyer has less Federal Reserve Notes and the seller has more Federal Reserve Notes, hence Federal Reserve Notes are in circulation as long a people are buying and selling things using Federal Reserve notes. Explain how demand deposits or checking account balances circulate when people are buying selling things using demand deposits or checking account balances. Finish this Statement