Question

2.Define the following terms
1)correspondent relationship
2)International settlements
3)visible trade
   4)financial transaction
5)vostro account
6)International trade
7)trade terms
8)open account
9)advance payment
10)sales contract

Answer 1

Answer to the question :-

1. in general term , corresponding relationship means having identical or similar relationship. It's mean when two or more thing are identical or similar to each other.

2. Its relationship between central Bank of one country with another. BIS (Bank for International Settlement) is the institution which take care of finance interest and stability among all central bank.

3.Visible Trade - if we take this in Economics paralanance ,then it's mean physical transaction of good between the countries . Like import and export of good. It's different from Invisible trade I e import and export of services.

4. Financial Transaction involves agreement between buyer and seller for sale or purchase of goods for consideration. Example Sale , Purchase, discount etc.

5.Vostro Account - it's mean having bank account of one country with another country. For example - Country A or Customer of A country have bank account with another country.

6. International trade mean having transaction between one country with another. Like Export and import.