Predicament essentially by : Precisely what is the definition of “hot money” in economics, finance and also banking?
What tends to make money “hot”?
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Answer:
Solution by Bobby
Hot money is really a term that is most generally used in financial markets to refer towards the flow of funds (or capital) coming from one country to another in order to earn a short-term profit on interest price differences and also/or predicted exchange price shifts. These speculative capital flows are often known as “hot money” mainly because they can easily move extremely quickly in and also out of markets, potentially leading to market instability
Solution by Raysor
Bobby is probably correct, it sounds good in any case!
I might mention it likewise usually means where the professional or intelligent funds are being invested. For example ‘the hot money is going into Shell’
Meaning professionals, fund managers and so on. are purchasing Shell when compared to other oil stocks
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What is the definition of “hot money” of the economy, finance, banking?