How do I know if my purchased music is being saved to the "cloud" so I don't need to do any other storage?

How do I know if my purchased music is being saved to the "cloud" so I don't need to do any other storage?

You're purchased music is not so much saved to the cloud, but rather indexed, since it is already in the cloud by virtue of being in the iTunes store.
If you want to check whether your purchases are being indexed or not, go to the purchased section on the main page of the iTunes store. There you will see a list of all your purchased items.

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