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Flight to quality Phenomenon

Exchange RateA flight to quality is a financial market terminology,which represents a situation when most of the investors shift their capital from high risk area to low risk area and purchase investments having low risk.In this type of investment strategy, mostly investors transfer their investments from currency to low risk investments such as Gold etc.

 

 

According to  experts,investors do this because of market related fear and panic.Mostly sudden and tragic events like Russian debt crisis in and 9/11 terrorist attacks can cause such kind of events.

 

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About Emaad Qureshi