What is the benefit to monster knowledge?

Question

If you go into the Character menu and look under Attributes, then Knowledge, there's entries for all the different monsters you've learned about.

I know you can learn these entries via Books (level 3/3 knowledge right away) or by killing enough monsters (gradually increases to 3/3).

What I don't know is the value or benefit to this knowledge. Increased damage to those enemies? Increased drops from those enemies (and if so, is that required for certain special craft components) ? Is it just the advice to the player (like don't try to poison Endregas) ?

Answer 1

Certain contract quests require a specific amount of knowledge before you're allowed to complete them. From that, you'll receive rewards/experience once you turn in these contract quests.

And, as you mentioned, reading the books allows you to obtain the knowledge more quickly than killing a large number of that specific species. You'll also receive some helpful advice like which sword or spell works best with that specific monster.