High Power Money (Reserve Money or Base Money)

High Power Money (Reserve Money or Base Money) – High power money is the base of money supply expansion in the economy.
High Power Money = C + OD + CR.
C = Currency with the public
OD = Other Deposits of the general public with the RBI (insignificant)
CR = Cash Reserves of banks which consists of (i.) Cash with banks themselves and (ii) Bankers deposits with RBI.