{"id":85677,"date":"2025-06-01T03:24:34","date_gmt":"2025-06-01T03:24:34","guid":{"rendered":"https:\/\/exam.pscnotes.com\/mcq\/?p=85677"},"modified":"2025-06-01T03:24:34","modified_gmt":"2025-06-01T03:24:34","slug":"in-india-the-term-hot-money-is-used-to-refer-to","status":"publish","type":"post","link":"https:\/\/exam.pscnotes.com\/mcq\/in-india-the-term-hot-money-is-used-to-refer-to\/","title":{"rendered":"In India, the term \u2018hot money\u2019 is used to refer to"},"content":{"rendered":"

In India, the term \u2018hot money\u2019 is used to refer to<\/p>\n

[amp_mcq option1=”Currency + Reserves with the RBI” option2=”Net GDR” option3=”Net Foreign Direct Investment” option4=”Foreign Portfolio Investment” correct=”option4″]<\/p>\n

\n
\n
This question was previously asked in<\/div>\n
UPSC CDS-2 – 2016<\/div>\n<\/div>\n
Download PDF<\/a>Attempt Online<\/a><\/div>\n<\/div>\n
\nIn India, the term \u2018hot money\u2019 is used to refer to D) Foreign Portfolio Investment.
\n<\/section>\n
\n‘Hot money’ refers to speculative capital flows that move quickly in and out of countries, seeking the highest short-term returns or reacting to expected exchange rate movements. Foreign Portfolio Investment (FPI), which involves investing in stocks, bonds, and other financial assets, is typically considered more liquid and volatile than Foreign Direct Investment (FDI), and thus is often referred to as ‘hot money’ because of its potential for rapid withdrawal during times of economic uncertainty.
\n<\/section>\n
\nForeign Direct Investment (FDI) involves establishing or acquiring businesses in a foreign country and is generally considered a long-term investment. Currency plus reserves with the RBI relate to the country’s monetary base and foreign exchange reserves. Net GDRs are a mechanism for Indian companies to raise foreign currency, but FPI encompasses a broader category of short-term financial investments which fit the description of ‘hot money’.
\n<\/section>\n","protected":false},"excerpt":{"rendered":"

In India, the term \u2018hot money\u2019 is used to refer to [amp_mcq option1=”Currency + Reserves with the RBI” option2=”Net GDR” option3=”Net Foreign Direct Investment” option4=”Foreign Portfolio Investment” correct=”option4″] This question was previously asked in UPSC CDS-2 – 2016 Download PDFAttempt Online In India, the term \u2018hot money\u2019 is used to refer to D) Foreign Portfolio … <\/p>\n

Detailed SolutionIn India, the term \u2018hot money\u2019 is used to refer to<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1088],"tags":[1098,1226],"class_list":["post-85677","post","type-post","status-publish","format-standard","hentry","category-upsc-cds-2","tag-1098","tag-external-sector-of-economy","no-featured-image-padding"],"yoast_head":"\nIn India, the term \u2018hot money\u2019 is used to refer to<\/title>\n<meta name=\"description\" content=\"In India, the term \u2018hot money\u2019 is used to refer to D) Foreign Portfolio Investment. 'Hot money' refers to speculative capital flows that move quickly in and out of countries, seeking the highest short-term returns or reacting to expected exchange rate movements. Foreign Portfolio Investment (FPI), which involves investing in stocks, bonds, and other financial assets, is typically considered more liquid and volatile than Foreign Direct Investment (FDI), and thus is often referred to as 'hot money' because of its potential for rapid withdrawal during times of economic uncertainty.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/exam.pscnotes.com\/mcq\/in-india-the-term-hot-money-is-used-to-refer-to\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"In India, the term \u2018hot money\u2019 is used to refer to\" \/>\n<meta property=\"og:description\" content=\"In India, the term \u2018hot money\u2019 is used to refer to D) Foreign Portfolio Investment. 'Hot money' refers to speculative capital flows that move quickly in and out of countries, seeking the highest short-term returns or reacting to expected exchange rate movements. Foreign Portfolio Investment (FPI), which involves investing in stocks, bonds, and other financial assets, is typically considered more liquid and volatile than Foreign Direct Investment (FDI), and thus is often referred to as 'hot money' because of its potential for rapid withdrawal during times of economic uncertainty.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/exam.pscnotes.com\/mcq\/in-india-the-term-hot-money-is-used-to-refer-to\/\" \/>\n<meta property=\"og:site_name\" content=\"MCQ and Quiz for Exams\" \/>\n<meta property=\"article:published_time\" content=\"2025-06-01T03:24:34+00:00\" \/>\n<meta name=\"author\" content=\"rawan239\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"rawan239\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"1 minute\" \/>\n<!-- \/ Yoast SEO Premium plugin. -->","yoast_head_json":{"title":"In India, the term \u2018hot money\u2019 is used to refer to","description":"In India, the term \u2018hot money\u2019 is used to refer to D) Foreign Portfolio Investment. 'Hot money' refers to speculative capital flows that move quickly in and out of countries, seeking the highest short-term returns or reacting to expected exchange rate movements. Foreign Portfolio Investment (FPI), which involves investing in stocks, bonds, and other financial assets, is typically considered more liquid and volatile than Foreign Direct Investment (FDI), and thus is often referred to as 'hot money' because of its potential for rapid withdrawal during times of economic uncertainty.","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/exam.pscnotes.com\/mcq\/in-india-the-term-hot-money-is-used-to-refer-to\/","og_locale":"en_US","og_type":"article","og_title":"In India, the term \u2018hot money\u2019 is used to refer to","og_description":"In India, the term \u2018hot money\u2019 is used to refer to D) Foreign Portfolio Investment. 'Hot money' refers to speculative capital flows that move quickly in and out of countries, seeking the highest short-term returns or reacting to expected exchange rate movements. Foreign Portfolio Investment (FPI), which involves investing in stocks, bonds, and other financial assets, is typically considered more liquid and volatile than Foreign Direct Investment (FDI), and thus is often referred to as 'hot money' because of its potential for rapid withdrawal during times of economic uncertainty.","og_url":"https:\/\/exam.pscnotes.com\/mcq\/in-india-the-term-hot-money-is-used-to-refer-to\/","og_site_name":"MCQ and Quiz for Exams","article_published_time":"2025-06-01T03:24:34+00:00","author":"rawan239","twitter_card":"summary_large_image","twitter_misc":{"Written by":"rawan239","Est. reading time":"1 minute"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"WebPage","@id":"https:\/\/exam.pscnotes.com\/mcq\/in-india-the-term-hot-money-is-used-to-refer-to\/","url":"https:\/\/exam.pscnotes.com\/mcq\/in-india-the-term-hot-money-is-used-to-refer-to\/","name":"In India, the term \u2018hot money\u2019 is used to refer to","isPartOf":{"@id":"https:\/\/exam.pscnotes.com\/mcq\/#website"},"datePublished":"2025-06-01T03:24:34+00:00","dateModified":"2025-06-01T03:24:34+00:00","author":{"@id":"https:\/\/exam.pscnotes.com\/mcq\/#\/schema\/person\/5807dafeb27d2ec82344d6cbd6c3d209"},"description":"In India, the term \u2018hot money\u2019 is used to refer to D) Foreign Portfolio Investment. 'Hot money' refers to speculative capital flows that move quickly in and out of countries, seeking the highest short-term returns or reacting to expected exchange rate movements. Foreign Portfolio Investment (FPI), which involves investing in stocks, bonds, and other financial assets, is typically considered more liquid and volatile than Foreign Direct Investment (FDI), and thus is often referred to as 'hot money' because of its potential for rapid withdrawal during times of economic uncertainty.","breadcrumb":{"@id":"https:\/\/exam.pscnotes.com\/mcq\/in-india-the-term-hot-money-is-used-to-refer-to\/#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/exam.pscnotes.com\/mcq\/in-india-the-term-hot-money-is-used-to-refer-to\/"]}]},{"@type":"BreadcrumbList","@id":"https:\/\/exam.pscnotes.com\/mcq\/in-india-the-term-hot-money-is-used-to-refer-to\/#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/exam.pscnotes.com\/mcq\/"},{"@type":"ListItem","position":2,"name":"UPSC CDS-2","item":"https:\/\/exam.pscnotes.com\/mcq\/category\/upsc-cds-2\/"},{"@type":"ListItem","position":3,"name":"In India, the term \u2018hot money\u2019 is used to refer to"}]},{"@type":"WebSite","@id":"https:\/\/exam.pscnotes.com\/mcq\/#website","url":"https:\/\/exam.pscnotes.com\/mcq\/","name":"MCQ and Quiz for Exams","description":"","potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/exam.pscnotes.com\/mcq\/?s={search_term_string}"},"query-input":"required name=search_term_string"}],"inLanguage":"en-US"},{"@type":"Person","@id":"https:\/\/exam.pscnotes.com\/mcq\/#\/schema\/person\/5807dafeb27d2ec82344d6cbd6c3d209","name":"rawan239","image":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/exam.pscnotes.com\/mcq\/#\/schema\/person\/image\/","url":"https:\/\/secure.gravatar.com\/avatar\/761a7274f9cce048fa5b921221e7934820d74514df93ef195a9d22af0c1c9001?s=96&d=mm&r=g","contentUrl":"https:\/\/secure.gravatar.com\/avatar\/761a7274f9cce048fa5b921221e7934820d74514df93ef195a9d22af0c1c9001?s=96&d=mm&r=g","caption":"rawan239"},"sameAs":["https:\/\/exam.pscnotes.com"],"url":"https:\/\/exam.pscnotes.com\/mcq\/author\/rawan239\/"}]}},"amp_enabled":true,"_links":{"self":[{"href":"https:\/\/exam.pscnotes.com\/mcq\/wp-json\/wp\/v2\/posts\/85677","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/exam.pscnotes.com\/mcq\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/exam.pscnotes.com\/mcq\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/exam.pscnotes.com\/mcq\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/exam.pscnotes.com\/mcq\/wp-json\/wp\/v2\/comments?post=85677"}],"version-history":[{"count":0,"href":"https:\/\/exam.pscnotes.com\/mcq\/wp-json\/wp\/v2\/posts\/85677\/revisions"}],"wp:attachment":[{"href":"https:\/\/exam.pscnotes.com\/mcq\/wp-json\/wp\/v2\/media?parent=85677"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/exam.pscnotes.com\/mcq\/wp-json\/wp\/v2\/categories?post=85677"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/exam.pscnotes.com\/mcq\/wp-json\/wp\/v2\/tags?post=85677"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}