Use app×
Join Bloom Tuition
One on One Online Tuition
JEE MAIN 2025 Foundation Course
NEET 2025 Foundation Course
CLASS 12 FOUNDATION COURSE
CLASS 10 FOUNDATION COURSE
CLASS 9 FOUNDATION COURSE
CLASS 8 FOUNDATION COURSE
0 votes
59 views
in GK by (114k points)
closed by
Which of the following is example for hot currency?
1. FDI
2. FII or FPI
3. Both (A) and (B)
4. Foreign debt

1 Answer

0 votes
by (113k points)
selected by
 
Best answer
Correct Answer - Option 2 : FII or FPI

The correct answer is FII or FPI.

  • Hot Currency:
    • This term is used in the foreign exchange market.
    • It is the temporary name of the hard currency when hard currency exiting an economy at a very fast pace.
    • It refers to funds that are controlled by investors who actively seek short-term returns.
    • Hot money is the flow of funds from one country to another in order to earn a short-term profit on interest rate differences.
    • A global depositary receipt (GDR) is a bank certificate issued in more than one country for shares in a foreign company.
    • Foreign direct investment is an investment in the form of controlling ownership in a business in one country by an entity based in another country.
    • Foreign portfolio investment is the entry of funds into a country where foreigners deposit money in a country's bank or make purchases in the country's stock and bond markets. In FPI, the investor does not have direct control over the securities or businesses.
    • Hot money is generally referred to as FPI.

Welcome to Sarthaks eConnect: A unique platform where students can interact with teachers/experts/students to get solutions to their queries. Students (upto class 10+2) preparing for All Government Exams, CBSE Board Exam, ICSE Board Exam, State Board Exam, JEE (Mains+Advance) and NEET can ask questions from any subject and get quick answers by subject teachers/ experts/mentors/students.

Categories

...