The M2 money supply is defined as the M1 money supply. To keep matters simple all of the above items will be grouped together as MMF.In this video I explain the reserve requirement, the money multiplier, and how money is created. Q: Suppose that the value of the potential money multiplier is equal to 10. Benefit analysis is a process used to measure the benefits of a decision or action minus its associated costs to determine whether it is worthwhile.