Iraqi Dinar Discussion Board

[Aerospace]

Yes... that is part of M1
Good info here.
http://en.wikipedia.org/wiki/Money_supply

M0
Laura has ten US $100 bills, representing $1000 in the M0 supply for the United States. (M0 = $1000, M1 = $1000, M2 = $1000)
Laura burns one of her $100 bills. The US M0, and her personal net worth, just decreased by $100. (M0 = $900, M1 = $900, M2 = $900)

M1
Laura takes the remaining nine bills and deposits them in her checking account at her bank. The bank then calculates its reserve using the minimum reserve percentage given by the FED and loans the extra money. If the minimum reserve is 10%, this means $90 will remain in the bank's reserve, and the remaining $810 can be used by the bank as lending money. The M1 money supply increased by $810 when the loan was made (assume no further loans); money has been created. (M0 = $900, M1 = $1710, M2 = $1710)
Laura writes a check for $400, check number 7771. The total M1 money supply didn't change, it includes the $400 check and the $500 left in her account. (M0 = $900, M1 = $1710, M2 = $1710)
Laura's check number 7771 is destroyed in the laundry. M1 and her checking account still have $900 because the check is never cashed. (M0 = $900, M1 = $1710, M2 = $1710)
Laura writes check number 7772 for $100 to her friend Alice, and Alice deposits it into her checking account. M0 still has that $900 in it, Alice's $100 and Laura's $800. (M0 = $900, M1 = $1710, M2 = $1710)
Laura deposits her paycheck for $5,000 in her checking account. That part of M1 money came from her employer's checking account. (M0 = $5900, M1 = $11210, M2 = $11210) [M1 = $1710+$5000+0.9($5000)=$11210]

M2
Laura writes check number 7774 for $1000 and brings it to the bank to start a Money Market account. M0 goes down by $1000, but M2 stayed the same, because M2 includes the Money Market account, but also everything in M1. (M0 = $4900, M1 = $6710, M2 = $6710)