Explanation:

High Powered Money, also known as the monetary base, typically consists of:

- C: Currency in circulation, including coins and banknotes that are physically used by the public.

- R: Reserves held by banks, including both required and excess reserves maintained at the central bank.

- OD: Other deposits of banks with the central bank, often including overnight deposits.

Here’s a breakdown of the options:

- Option 1: C + DD + OD:

- DD typically refers to demand deposits, not directly part of high-powered money.

- Option 2: C + R + OD:

- This option correctly captures the components of High Powered Money: Currency, Reserves, and Other Deposits.

- Option 3: C + R + TD:

- TD refers to time deposits, which are typically excluded from the monetary base.

- Option 4: C + DD + TD:

- This mix includes demand and time deposits, which are not part of high-powered money.