Indian-Economy
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Q.

The term Hot money is used for:

 A.

Black money

 B.

a money which comes easily and goes easily too

 C.

a money which is hard to come but easy to go

 D.

A money which is easy to come but hard to go

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Solution:
Option(B) is correct

In financial markets, 'hot money' is the flow of funds (or capital) from one country to another in order to earn a short-term profit on interest rate differences and/or anticipated exchange rate shifts.

These speculative capital flows are called 'hot money' because they can move very quickly in and out of markets, potentially leading to market instability.


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