1. The money supply M1 includes both cash and checking deposits.
2. M0 is a broader measure of the money supply than M2.
3. The monetary base (MB) includes bank reserves held at the central bank.
4. Traveler’s checks are part of the money supply M1.
5. Time deposits are included in M2 but not in M1.
6. The money multiplier effect is only possible when banks hold 100% of their deposits as reserves.
7. Currency in circulation is part of both M0 and M1.
8. Large time deposits are included in M1.
9. M2 includes all of M1 plus savings accounts.
10. The Federal Reserve controls the monetary base (MB) directly through open market operations.