The term " Nostro Account " was recently in the news is related to: It is an account that one bank holds in another bank It is used to facilitate international transactions Select the correct answer using the code given below: Options: A . &nbsp(ii) only B . &nbspBoth (i) & (ii) C . &nbsp(i) only D . &nbspNeither (i) nor (ii)

The term "Nostro Account" was recently in the news is related to: It is an ac

Question

The term "Nostro Account" was recently in the news is related to:

It is an account that one bank holds in another bank

It is used to facilitate international transactions

Select the correct answer using the code given below:

Options:

A . (ii) only

B . Both (i) & (ii)

C . (i) only

D . Neither (i) nor (ii)

Answer: Option B
Answer: (b)
A Nostro account refers to an account that a bank holds in a foreign currency in another bank. Nostro account and Vostro account refer to the same thing from a different perspective.
For example, Bank X has an account with Bank Y in Bank Y's home currency.
To Bank X, that is a Nostro account, meaning "our account on your books," while to Bank Y, it is a Vostro, meaning "your account on our books."
These accounts are used to facilitate foreign exchange and international trade transactions.

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