Khan Academy on Money supply components

Economics Economics Questions
1

This is the video I have doubts about: http://www.youtube.com/watch?v=_LPh72gx6GE

I am just wondering about two things:

  1. Is Khan double counting savings deposits as a part of M2 money supply, since he already includes the paper dollar bill that goes into savings deposits (the one dollar paper note at the top, in this example) in Private banks 1 and 2 as part of the Monetary Base (M0)?

  2. Is he right in considering savings deposits to be $2? I think not. The one dollar paper bill (at the top, in this example) passes through two bannks, before it reaches the wallet of a borrower. But the money doesn’t actually get multiplied to $2 in the process of moving through the two private banks as it gets passed through the banks as savings (time) deposit. Basically, at the end of the process the effect on the total money supply that is under the spending ability of people is only $1.

This is the first time I’m trying to make sense of the money supply components. Would be interested to know what you guys think.