Definition of Hot Money- Fund dumped to get advantage of favourable interest rate

Q.  Which of the following is the correct definition of Hot Money?
- Published on 20 Jul 15

a. This is the fund which is dumped into a country to get the advantage of a favourable interest rate
b. 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
c. This is the fund which is pushed into market through illegal methods
d. None of the above

ANSWER: This is the fund which is dumped into a country to get the advantage of a favourable interest rate
 
It can move in and out of the market very quickly leading to market instability.

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