What is the difference between checks and cash?
Question:
Answer:
Cash is the money in hand. Boom you know its there. You are guaranteed it.
Check is an IOU basically. We get it in good faith and trust that the money will be available to us. But what if it isnt. You have no guarantees
Checks are simply a note indicating that payment will be made on the amount indicated. Cash is the payment itself. A check can be written on anything because it is a contract for which the message, the words, are what matter, not the form. Money on the other hand is legal tender (worth exactly what it says, not as an indicator of intent to pay) so it only appears in the form printed by the government so that bill retains the value.
Cash is the most liquid commodity, there is no trace, but the checks can be liability, you do not necessarily get cash from checks, because people write checks without money in the account.
I'm sure there are a variety of answers and it is difficult to know what context your teacher was asking the question.
The possible answers I can think of are:
A check is a negotiable instrument and can have restrictions; cash is bearer item (meaning possession is all you need for rights to it).
A check has a limited time frame, even though it can be passed from party to party it does have a finite end. Cash, in the absence of destruction, continues on in perpetuity.
Or maybe she was looking for the answer to be nothing, that the differences are insignificant to what the transfer of value really is.
Checks are a way of using money that is not nessisarly avalible to you...but money is something that you have and then lose once you spent it all...
never mind the question. I can't believe you were actually in college, and still spell and build sentences like my fifth grader.
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