Spot exchange typically involves:
A) no transaction costs.
B) some transaction costs.
C) extremely high transaction costs.
D) long-term contracts.

Question

Quizplus · Accepted Answer

Spot exchange typically involves some transaction costs, such as brokerage fees or exchange fees. This is because the exchange of currencies is an active process that requires the involvement of intermediaries. Option A is incorrect because there are usually some costs associated with spot exchange. Option C is incorrect because the transaction costs are not typically extremely high. Option D is incorrect because spot exchange does not involve long-term contracts.

Spot Exchange Typically Involves