The term "Hot Money" means"
Currency whose value is likely to fall sharply
Incorrect AnswerCurrency whose value is likely to go up rapidly
Incorrect AnswerMoney which has a tendency to fly out of the country
Correct AnswerCurrency which commands high value in international market
Incorrect AnswerExplanation:
3rd statement is correct.
"Hot money" refers to funds that are controlled by investors who actively seek short-term returns. These investors scan the market for short-term, high interest rate investment opportunities. A typical short-term investment opportunity that attracts "hot money" is the certificate of deposit (CD).
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By: Abhipedia