NAB International Banking 2

Question 1

What does SWIFT stand for in the context of international banking?

Accepted Answer

Society for Worldwide Interbank Financial Telecommunication

Answer

SWIFT stands for Society for Worldwide Interbank Financial Telecommunication, a messaging network banks use to securely send and receive international payment instructions.

Question 2

What is a 'nostro' account in international banking?

Accepted Answer

An account a domestic bank holds at a foreign bank in that bank's currency

Answer

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.

Question 3

Which currency pair typically has the highest daily trading volume in the global foreign exchange market?

Accepted Answer

EUR/USD

Answer

EUR/USD is the most traded currency pair globally, accounting for approximately 20–24% of daily forex market volume.

Question 4

How many characters make up a standard SWIFT/BIC code?

Accepted Answer

8 or 11

Answer

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.

Question 5

What is 'vostro' account from the perspective of the correspondent bank holding it?

Accepted Answer

An account the correspondent bank holds on behalf of a foreign bank

Answer

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.

(NAB) National Australia Bank Practice Test

(NAB) National Australia Bank Practice Test

NAB International Banking 2