Question

2. Explain the meaning of spot contracts and relational contracts and the difference between the two (5 points).

Answer 1

ANSWER :-

☆Generally utilized in the worldwide exchange, spot contracts are the agreements which remember the conveyance or offer of an item for the current time frame. These agreements likewise remember the trading of monetary forms for the spot. Spot contracts happen between two money related organizations or organizations.

●The conveyances and financial settlements occur inside two days after the agreement or exchange has been fixed and in this manner it is known to be the spot date.

●Though the relational contracts just happen where there is a feeling of confidence between two gatherings. These agreements are contracts as well as they are subject to the relationship and conduct of two gatherings who enjoy the agreement.

●The exchanges and trade in the spot contracts are to a greater extent a discrete nature however relational contracts are seen from the relationship perspective.

●Another most significant contrast between the two agreements is that the spot contracts remember the settlement for the quick premise through physical conveyance yet the relational contracts don't zero in on the detect these agreements give more consideration to the relationship.

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