International Banking Flashcards
7 cards from real NAB practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 7 International Banking flashcards as text
What does SWIFT stand for in the context of international banking?
Answer: Society for Worldwide Interbank Financial Telecommunication
SWIFT stands for Society for Worldwide Interbank Financial Telecommunication, a messaging network banks use to securely send and receive international payment instructions.
What is a 'nostro' account in international banking?
Answer: An account a domestic bank holds at a foreign bank in that bank's currency
A nostro account (from Latin 'ours') is an account a domestic bank holds at a foreign bank, denominated in the foreign currency, to facilitate international transactions.
Which currency pair typically has the highest daily trading volume in the global foreign exchange market?
Answer: EUR/USD
EUR/USD is the most traded currency pair globally, accounting for approximately 20–24% of daily forex market volume.
How many characters make up a standard SWIFT/BIC code?
Answer: 8 or 11
A SWIFT/BIC code is either 8 characters (without branch code) or 11 characters (with branch code), identifying the bank, country, location, and optionally the branch.
What is 'vostro' account from the perspective of the correspondent bank holding it?
Answer: An account the correspondent bank holds on behalf of a foreign bank
A vostro account (from Latin 'yours') is what the correspondent bank calls the account it holds on behalf of a foreign bank — the mirror image of the nostro account.
What is the primary role of the Bank for International Settlements (BIS)?
Answer: To serve as a bank for central banks and foster international monetary cooperation
The BIS serves as a bank for central banks, promotes international monetary and financial stability, and hosts key standard-setting bodies such as the Basel Committee on Banking Supervision.
Which foreign exchange rate system allows a currency's value to be determined primarily by open market supply and demand?
Answer: Floating exchange rate system
A floating exchange rate system allows currency values to fluctuate freely based on market forces of supply and demand, with minimal direct government or central bank intervention.