The banks that deals with reciprocal agreements and accounts are considered as ____________?
Correct answer: A. correspondent banks
- A. correspondent banks
- B. non-correspondent banks
- C. reciprocal transactions
- D. functional banks
Explanation
Correspondent banks maintain reciprocal accounts and banking arrangements with one another, often to facilitate international payments and services. The other options describe neither a recognized bank category nor the arrangement itself.
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Business finance explains how organisations plan, obtain and use money while balancing risk, return and liquidity. Topics include financial statements, time value of money, budgeting, working capital, capital structure, sources of finance, investment appraisal and cost of capital. Capital budgeting evaluates long-term projects, whereas working capital manages day-to-day operations.
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