Topic 4 Flashcards
1
Q
What is a nostro account?
A
Current a/c of a local bank in a foreign currency maintained by a foreign bank
2
Q
What is a Vostro account?
A
Current a/c of a foreign bank in local currency maintained by a local bank
3
Q
What are the methods of remitting funds?
A
Cheque (local, foreign)
Bank draft
TT
Swift
4
Q
What are the criteria for assessing advantages and disadvantages of methods of remittance?
A
Cost
Efficiency
Speed
Risk
5
Q
What are the 2 types of international current accounts?
A
Nostro
Vostro
