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Funds which flow into a country to take advantage of favourable rates of interest in that country is called
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- Cold Money
- Black Money
- Hot Money
- White Money
- Cold Money
Correct Option: C
Hot money is a term that is most commonly used in financial markets to refer to the flow of funds (or capital) 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.