Which of the following describes an IBAN?

The correct choice describes an International Bank Account Number (IBAN) as a standard format for account numbers that facilitates international payments. IBANs are used to identify specific bank accounts across national borders, allowing for efficient and accurate processing of cross-border transactions. Each IBAN includes a country code, a check digit, and the basic bank account number, which ensures that payments can be routed correctly and without delays.

This standardization is crucial in reducing errors and improving the speed of international transactions, as it provides banks and payment processors with a clear reference point for the account involved in a transaction. The format helps in automating the payment processes and confirming the legitimacy of the account details provided.

In contrast, the other options do not accurately define an IBAN. The first option suggests that IBAN is a unique identification number for each bank transaction, which is misleading since the IBAN identifies an account rather than an individual transaction. The third option presents it as an internal number used by banks, which does not capture its intended purpose of facilitating international payments. Lastly, the fourth option refers to a temporary account identification for one-time payments, which does not align with the function or permanence of an IBAN.