2016 · Q107
In India, the term ‘hot money’ is used to refer to
General KnowledgeIndian Economy
- ACurrency + Reserves with the RBI
- BNet GDR
- CNet Foreign Direct Investment
- DForeign Portfolio Investment
Explanation
"Hot money" refers to foreign portfolio investment — footloose capital that flows in and out of stock and debt markets on short-term sentiment, unlike stable foreign direct investment. Currency plus RBI reserves, GDRs and net FDI are not what the term denotes.