A transaction cost associated with spot trading is:

a. travel to and from the market.
b. shipping costs.
c. brokerage commissions.
d. the spread, which is earned mostly by large banks.

Answer: d. the spread, which is earned mostly by large banks.

Economics

You might also like to view...

Explain how a market demand curve is constructed

What will be an ideal response?

Economics

Which of the following would prevent a pharmaceutical manufacturer from successfully using price discrimination?

a. It's customers all have the same elasticity of demand for its drugs. b. The demand schedule for pharmaceuticals is horizontal. c. Low-price customers could resell the drugs to high-priced customers. d. All of the above.

Economics