Hot Money

Hot Money

1. Money that flows regularly between financial markets as investors attempt to ensure they get the highest short-term interest rates possible. Hot money will flow from low interest rate yielding countries into higher interest rates countries by investors looking to make the highest return. These financial transfers could affect the exchange rate if the sum is high enough and can therefore impact the balance of payments.

2. Stolen money that is marked so as as to be traceable.

1. Banks usually attract "hot money" by offering relatively short-term certificates of deposit that have above-average interest rates. As soon as the institution reduces interest rates or another institution offers higher rates, investors with "hot money" withdraw their funds and move them to another institution with higher rates.

2. Hot money might have been involved in a robbery and tracked through dye marks on each bill or through recorded serial numbers.

Investment dictionary. . 2012.

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  • 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… …   Wikipedia

  • Hot money — Money that moves across country borders in response to interest rate differences and that moves away when the interest rate differential disappears. The New York Times Financial Glossary * * * hot money hot money ➔ money * * * hot money UK US… …   Financial and business terms

  • *hot money — ● hot money nom féminin invariable (anglais hot money, fonds brûlants) Synonyme de capitaux fébriles. ● hot money (synonymes) nom féminin invariable (anglais hot money, fonds brûlants) Synonymes : capitaux fébriles …   Encyclopédie Universelle

  • hot money — [ ɔtmɔnɛ] n. f. ÉTYM. 1962, in Höfler; expression anglo américaine, de hot « chaud », et money « argent ». ❖ ♦ Anglic. Fin. Capitaux spéculatifs qui se placent à court terme. Syn. franç.  …   Encyclopédie Universelle

  • Hot Money — Hot Mo|ney 〈[hɔ̣t mʌ̣nı] n.; od. s; unz.〉 = heißes Geld * * * Hot Money   [ hɔt mʌnɪ; englisch »heißes Geld«] das, , Bezeichnung für meist sehr umfangreiche kurzfristige Gelder, die auf den internationalen Geld und Devisenmärkten (z. B. dem… …   Universal-Lexikon

  • hot money — hot mo·ney loc.s.m.inv. ES ingl. {{wmetafile0}} TS econ. 1. capitali spostati rapidamente per sfruttare i tassi d interesse più convenienti 2. moneta in rapida svalutazione {{line}} {{/line}} DATA: 1956. ETIMO: ingl. hot money propr. denaro caldo …   Dizionario italiano

  • Hot Money — Hot Mo|ney [ hɔt mʌni] das; <aus gleichbed. engl. amerik. hot money, eigtl. »heißes Geld«> Geld, das kurzfristig von Land zu Land transferiert wird, um Währungsgewinne zu erzielen …   Das große Fremdwörterbuch

  • Hot money — Als hot money (heißes Geld) bezeichnet man auf den Finanzmärkten Kapital, das aus einem Land in ein anderes verlagert wird, um aus unterschiedlichen Zinsniveaus und/oder erwarteten Änderungen von Wechselkursen kurzfristig Gewinne zu erzielen.… …   Deutsch Wikipedia

  • hot money — An informal term used to describe funds provided by the most price sensitive and credit quality sensitive sources. The bank liabilities that are likely to be lost most quickly in the event of a loss of confidence or competitiveness. American… …   Financial and business terms

  • hot money — 1) Money that moves at short notice from one financial centre to another in search of the highest short term interest rates, for the purposes of arbitrage, or because its owners are apprehensive of some political intervention in the money market …   Accounting dictionary

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