1.

Which of the following statement is/are correct regarding the Vostro account?1). It is an account held by a correspondent bank on behalf of another bank.2). The account is a record of money owed to or maintained by a third party.3). A Vostro account is like any other account held by a bank.4). All of the above

Answer»

"Vostro account" is the TERM used by Bank B, where bank A's money is on deposit.

  • Vostro is derived from the Latin word for "yours," and refers to "your money that is on deposit at our bank."
  • A Vostro account is like any other account held by a bank.
  • The account is a RECORD of money owed to or maintained by a THIRD party, typically ANOTHER bank, but it can be either a company or an individual.


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