When a bank acts as an agent of another bank, especially in carrying a deposit balance for the latter, then that bank will be referred to as a ________.

Question

Quizplus · Accepted Answer

A correspondent bank acts as an agent or provides services to another bank, often carrying a deposit balance. Commercial banks are banks that offer services to businesses and individuals, while central banks are government-owned institutions that regulate a country's monetary policy. Reserve banks are often another term for central banks.

When a Bank Acts as an Agent of Another Bank