Question 29

Many a times we read in the newspapers a term 'HOT MONEY'. Which of the following is the correct de nition of HOT MONEY ?
(A) This is the fund which is dumped into a country to get the advantage of a favourable interest rate and hence brings higher returns.
(B) This is the fund which is provided by a bank in US$ at very short notice and at a very high rate of interest and for a longer period of repayment.
(C) This is the fund which is pushed into market through Hawala or some other such illegal methods and sometimes referred also as Black Money.

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