Q.

Foreign currency which has a tendency of quick migration is called -

A. Scarce currency
B. Soft currency
C. Gold currency
D. Hot currency
Answer» D. Hot currency
Explanation: Hot money or currency is a term that is most commonly used in financial markets to refer to the now of funds (or capital) from one country to another in order to earn a short-term profit on interest rate differences and/or anticipated exchange rate shifts. These speculative capital flows are called "hot money" because they can move very quickly in and out of markets, potentially leading to market instability.
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