JAMB UTME - Commerce - 2008 | Green Bridge CBT

Question 1 Report

An account maintained with a commercial bank for the purpose of foreign exchange transaction is the?

foreign account

international account

domiciliary account

foreign reserves account

Answer Details

An account maintained with a commercial bank for the purpose of foreign exchange transactions is called a domiciliary account. A domiciliary account is an account that is denominated in a foreign currency, such as US Dollars, Euros, or Pounds Sterling. This type of account is used to receive and send foreign currencies, and it is often used for international business transactions or to receive payments from abroad. With a domiciliary account, you can carry out foreign exchange transactions easily and efficiently, without having to worry about exchange rate fluctuations. You can also receive and hold funds in foreign currency without having to convert them into your local currency. In summary, a domiciliary account is an account that allows you to conduct foreign exchange transactions with ease and convenience. It is an essential tool for businesses and individuals that engage in international transactions and need to hold and transfer funds in foreign currencies.

Read lesson note on Purchase And Sale Of Goods In Home And Foreign Trade (WAEC)

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