New Click here to Attempt NABARD Scholarship Test

    Question

    Local currency account maintained by a local bank for a

    foreign (correspondent) bank is called-
    A Currency account Correct Answer Incorrect Answer
    B Nostro Account Correct Answer Incorrect Answer
    C Vostro account Correct Answer Incorrect Answer
    D Forex Account Correct Answer Incorrect Answer
    E Escrow Account Correct Answer Incorrect Answer

    Solution

    Nostro account refers to an account that a bank holds in a foreign currency in another bank. Nostros, a term derived from the Latin word for "ours," are frequently used to facilitate foreign exchange and trade transactions. The opposite term vostro accounts , derived from the Latin word for "yours," is how a bank refers to the accounts that other banks have on its books in its home currency.

    Practice Next

    Relevant for Exams: