Vidyalelo
Management · Q59

International Finance and Treasury

Graduate and Post Graduate · Management · question 59

Q59

A bank located usually in another country that provides service for another bank is

A.
Foreign bank
B.
Central bank
C.
Correspondent bank
Answer
D.
World Bank

Answer: Option C

Solution

Answer: Option C
Solution:
A bank located usually in another country that provides service for another bank is Correspondent bank. A correspondent bank is a bank that provides services on behalf of another, equal or unequal, financial institution. It can facilitate wire transfers, conduct business transactions, accept deposits, and gather documents on behalf of another financial institution.