1. The percentage share of total U.S. financial assets held by commercial banks and thrifts has increased since 1980.

2. Check able deposits held in saving and loan institutions, mutual savings banks, and credit unions are part of the M1 definition of the money supply.

3. Credit cards are treated as money because they facilitate transactions.

4. The number of U.S. banks has increased since 1990.

5. The twelve Federal Reserve Banks are govern mentally owned but privately controlled.

6. Currency and coins held by banks are part of the M1 definition of money supply.

7. The monetary multiplier and the income multiplier are two ways of referring to the same concept.

8. Balance sheets always balance because reserves must always equal liabilities plus net worth

9. In an uncontrolled or unregulated system commercial bank lending will tend to intensify the business cycle.

10. When commercial banks retire outstanding loans, the supply of money is increased.

11. Commercial bank reserves are an asset to commercial banks but a liability to the Federal Reserve Bank holding them.

12. An individual bank can safely lend out a multiple of its excess reserves, but the banking system can safely lend out only an amount equal to the excess reserves in the banking system.