Quote:
Originally Posted by priyank  Hey, this has alrady been asked.....
Please check b4 asking......
The answer is False... |
u r right...Banks cannot create base money. A borrower receives a credit in the form of a deposit which he can withdraw as cash, i.e. base money, on demand. Conversely a cash deposit into a bank converts the money into a credit, which in effect is a loan to the bank.
n d answer to ur quest...
nostro acc-An account that a bank holds with a foreign bank.
investopedia says:Nostro accounts are usually in the currency of the foreign country. This allows for easy cash management because currency doesn't need to be converted.
Nostro is derived from the latin term "ours."
Vostro Account
The account a correspondent bank, usually U.S. or UK, holds on behalf of a foreign bank. Also known as a loro account.
Investopedia Says: Vostro is latin for yours.
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