Contracts are usually less costly to arrange and enforce than spot market transactions, and they bring benefits that are unobtainable in spot markets.

Question

Quizplus · Accepted Answer

Contracts often involve higher costs for arrangement and enforcement compared to spot market transactions due to the need for detailed negotiation, monitoring, and potential legal costs for enforcement. Spot markets allow for immediate transactions with less need for extensive agreements and legal safeguards.

Contracts Are Usually Less Costly to Arrange and Enforce Than