Say I buy a 2 dollar bottle of Coke from a grocery store. I go up to the cashier, I give them the money, they put it in the till, and I walk away. I have given money to the store, who presumably will then use that 2 dollars to fill out their employees paychecks, pay for things in the store like water, electricity, heating, janitorial staff for cleaning, etc, etc.
After all of that, how will Coke ever see my 2 dollars? It would seem to be that the money would have diluted beyond all recognition by that point.
In: Economics
Many retail establishments actually operate on a credit basis. They bring in various products from a distributor and are generally given credit terms, some times net 14 days or net 30 days before they begin to accrue interest. Could be longer depending on the industry. You buying the coke puts the money into the pocket of the business who can then pay their distributor who probably then pays the company that manufactured that item
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