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Management · Q413

International Finance and Treasury

Graduate and Post Graduate · Management · question 413

Q413

Banks that deals with reciprocal agreements and accounts are considered as

A.
correspondent banks
Answer
B.
non-correspondent banks
C.
reciprocal transactions
D.
functional banks

Answer: Option A

Solution

Answer: Option A
Solution:
Banks that deals with reciprocal agreements and accounts are considered as correspondent banks. Correspondent banks are financial institutions that act as an agent on behalf of other financial institutions, usually foreign banks.