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- Dictionaryhot money
noun
- 1. capital which is frequently transferred between financial institutions in an attempt to maximize interest or capital gain: "hot money left US banks as interest rates fell"
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- Hot money
Economic term
In economics, hot money is the flow of funds 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. Wikipedia
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