Which money is referred to as ‘hot money’?
A
Option A: Money that moves away when the interest rate differential narrows
B
Option B: That moves across country borders in response to interest rate differences
C
Option C: Both of them
D
Option D: None of them
Correct answer C. Both of them
Explanation
Hot money is short-term capital that moves rapidly between countries to chase higher interest rates and leaves quickly when the interest rate gap narrows.
Answer checked 11 October 2026 · How we write and check questions
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