Which of the following is true regarding the term “Hot Money”?

1. It is the capital which is frequently transferred between financial institutions in an attempt to maximize interest or capital gain.

2. It is the particular currency, which is has high fluctuations in its value, due to frequent exchanges.

Select the correct answer using the code given below:-

1
1 only
2
2 only
3
Both 1 and 2
4
Neither 1 nor 2

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