Q. Consider the following statements:
1.A vostro account is an account that a bank holds in a foreign currency in another bank.
2.Special Rupee Vostro Accounts (SRVA) is an additional arrangement to the existing system that uses freely convertible currencies and works as a complimentary system.
Select the correct statements using the codes given below:
Answer: B
Notes:
Explanation –
Statement 1 is incorrect. A vostro account is an account that domestic banks hold for foreign banks in the former’s domestic currency.
Statement 2 is correct. SRVA is an additional arrangement to the existing system that uses freely convertible currencies and works as a complimentary system.
Source: ForumIAS
