Which instrument transfers money to others without carrying cash?

Which instrument transfers money to others without carrying cash?

• A. Debit Card
• B. Bank Transfer
• C. Cheque
• D. E-wallet

Answer: (C)

Non-cash payment instruments move money without handing over cash. A cheque is a written instruction from the account holder to the bank, directing it to pay a specific amount to the named person. When the cheque is deposited or presented, the bank transfers funds from the payer’s account to the payee, so no physical cash changes hands. It’s the classic formal instrument that enables moving funds without cash. Debit cards, bank transfers, and e-wallets also transfer money without cash, but they’re payment methods or digital channels rather than a negotiable instrument issued to authorize payment.

Non-cash payment instruments move money without handing over cash. A cheque is a written instruction from the account holder to the bank, directing it to pay a specific amount to the named person. When the cheque is deposited or presented, the bank transfers funds from the payer’s account to the payee, so no physical cash changes hands. It’s the classic formal instrument that enables moving funds without cash.

Debit cards, bank transfers, and e-wallets also transfer money without cash, but they’re payment methods or digital channels rather than a negotiable instrument issued to authorize payment.