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Foreign Currency which has tendency of quick migration is called

  • A.Hot currency
  • B.Soft currency
  • C.Gold currency
  • D.Scarce currency

Answer: A

It is called hot currency.

Hot money moves quickly between countries in search of a higher return or in flight from risk, and its sudden withdrawal can destabilise a currency - as it did in the East Asian crisis of 1997. Soft currency is one not readily accepted in international payments.

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