Source: SOURCE: Image of Treasury Bond Creative Commons http://www.treasurydirect.gov/kids/basics/basics_bonds.htm; SOURCE: Image of Bank Vault Creative Commons https://commons.wikimedia.org/wiki/File:WinonaSavingsBankVault.JPG; SOURCE: Image of U.S. Treasury Bond Creative Commons https://upload.wikimedia.org/wikipedia/commons/5/58/EE_Savings_Bond.jpg
The narrowest definition of money, includes only the stock of physical currency.
Includes demand deposits (checking account balances) + M0 (stock of physical currency).
Time deposits + M1 (demand deposits + stock of physical currency).
One of the mechanisms available to the Fed to regulate interest rates and the money supply; open market operations refer to the purchase and sale of U.S. Treasury securities.