Sawaal
4
Q:

In India, the term ‘hot money’ is used to refer to 

 

A) Currency + Reserves with the RBI B) Net G D R
C) Net Foreign Direct Investment D) Foreign Portfolio Investment

Answer:   D) Foreign Portfolio Investment



Explanation:

In fact, FPI is often referred to as “hot money” because of its tendency to flee at the first signs of trouble in an economy. These massive portfolio flows can exacerbate economic problems during periods of uncertainty.

 

Subject: General Awareness
Exam Prep: Bank Exams
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