Question

Union Bank of India opening a dollar account with Citibank in New York is called as -

Q: Answer-Union Bank of India opening a dollar account with Citibank in New York is called as -

A nostro account will be in foreign currency it is a record of funds held by a bank in another country in the currency of that country i.e. a bank in country A keeping a record of money held by a bank in country B, in the currency of country B. A vostro account will be in the local currency of the bank where the money is being held i.e. it is the bank in Country Bs record of the money kept by the bank from country A with it.