Which of the Following Definitions of a Nostro Account Is

question 592

Multiple Choice

Which of the following definitions of a nostro account is correct?

• A) A nostro account is an account held by a bank in a foreign country in the banks domestic currency.
• B) A nostro account is an account held by a bank in a foreign country for cash collateralising OTC derivative positions with banks in that country.
• C) A nostro account is an account held by a bank in a foreign country in the currency of that country.
• D) A nostro account is an account held by a bank in its home country in a foreign currency.

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Definitions:

Traditional Market System

An economic system where trade and economic activities are based on customs, history, and time-honored beliefs.

Marginal Utility

A concept in economics that represents the additional satisfaction or utility a consumer gains from consuming one more unit of a good or service.

Budget Allocation

The process of distributing available financial resources among different departments, projects, or sectors within an organization or government.

Utility Maximized

The point at which a consumer achieves the highest level of satisfaction possible, given their budget constraints and the prices of goods and services.