Which term refers to the cash in circulation that people and businesses use for ordinary transactions?

"Cashflow" may be the term.

Cashflow is used to explain how cash is used by people in their everyday lives, and where most of the money is gone, as well as where the money 'returns'.

For example, it may go from a farmer to a store to buy seeds, from the store to the landowner to pay for rent, and from the landowner to the bank. The bank would then use the money to give to the farmer again if the farmer takes out a loan.

hope this helps

Lot of points 7.34 your welcome