Banking - Important Banking Concepts
Q1: What is Balance of Trade?
Answer: The value of a country’s exports minus the value of its imports. Unless specified as the balance of merchandise trade, it normally incorporates trade in services, including earnings (interest, dividends, etc.) on financial assets.
Q2: What is Balance of Payments?
Answer: A list of all of a country’s international transactions for a given time period, usually one year. Payments into the country (receipts) are entered as positive numbers, called credits; Payments out of the country (payments) are entered as negative numbers called debits. A single numbers summarize all of a country’s international transactions: the balance of payments surplus.
Q3: What is NOSTRO Account?
Answer: A Nostro account is maintained by an Indian Bank in the foreign countries.
Q4: What is VOSTRO Account?
Answer: A Vostro account is maintained by a foreign bank in India with their corresponding bank.
Q5: What is BCBS?
Answer: Basel Committee on Banking Supervision is an institution created by the Central Bank governors of the Group of Ten nations.