I read the following three statements concerning M1 and M2 in Canada:
a) "M1 consists of currency held outside the banks and chequable deposits of individuals and businesses."
b) "M1 does not include currency held by banks, and it does not include currency and bank deposits owned by the government of Canada."
c) "M2 consists of M1 plus all other deposits."
My questions about these quotes are:
1) Does "currency and bank deposits owned by the government of Canada" in
(b) mean currency and deposits at the Bank of Canada? If not, are these deposits just deposits by the Canadian government at some other bank? And where does the government of Canada keep its currency?
2) If the above ^^ is correct that these are currency and deposits at the Bank of Canada, does "M2 consists of M1 plus all other deposits" in
(c) imply that while deposits at the Bank of Canada are part of M2, currency held by Bank of Canada (ie its reserves) are not part of M2, ie Bank of Canada's reserves are not money?