Many a times we read in the newspapers a term ‘Hot Money’. Which of the following is the correct definition of Hot Money ?
1. This is the fund which is dumped into a country to get the advantage of a favourable interest rate and hence brings higher returns.
2. This is the fund which is provided by a bank in US $ at very short notice and at a very high rate of interest and for a longer period of repayment.
3. This is the fund which is pushed into market through Hawala or some other such illegal methods and sometimes referred also as Black Money.
- Only 1 is correct
- Both 1 and 2 are correct
- Only 3 is correct
- Both 1 and 3 are true
- Only 2 is correct