Multiple Choice Questions on A foreign currency account maintained by a bank abroad is its ........ for SEBI Grade A ( Officer) Exam Preparation

Balance of Payment and Foreign Exchange Markets

Economics- Phase (I & II)

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Indian Economy - Understanding the basics of Indian economic system

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    A foreign currency account maintained by a bank abroad is its

    nostro account

    Correct Answer

    vostro account

    Incorrect Answer

    loro account

    Incorrect Answer

    oreign bank account

    Incorrect Answer
    Explanation:

    A 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.


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