Economics · Financial Markets
What is meant by the term 'Hot Money' in economics?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1Cash currency reserved for emergency government spending
- 2Capital that flows rapidly between financial markets to exploit short-term interest rate differentials✓
- 3Funds generated from illegal sources or black money
- 4Newly printed currency notes issued by the central bank
Correct answer
Capital that flows rapidly between financial markets to exploit short-term interest rate differentials
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