"Hot money" is
A) funds that can be moved from one type of investment to another on very short notice.
B) money that is stolen and used to buy financial instruments.
C) money that is used by a central bank when a currency is appreciating,or becoming "hot."
D) funds that are being saved by a financial institution for good or "hot" times.
E) money earned from very high-risk investments in less developed countries.

Question

Quizplus · Accepted Answer

Hot money refers to funds that can be moved from one type of investment to another quickly and easily. It is typically invested in short-term, high-yield investments, and can be quickly withdrawn from those investments if the rates start to fall. Hot money is often associated with short-term speculative investing and is considered volatile because it can easily move from one investment to another.

"Hot Money" Is