Which of the following payment mechanism exists only in cyberspace?

Digital cash

The correct answer is option 2- Digital cash.

Digital Cash is a form of electronic currency that exists only in cyberspace. This type of currency has no real physical properties, but offers the ability to use real currency in an electronic format. First you need to pay to a bank (vide cheque, draft, etc.) an amount equivalent to the digital cash that you want to get issued in your favour. Then the bank dealing in e-cash will send you a special software (you can download on your hard disk) that will allow you to draw digital cash from your account with the bank. You may then use the digital funds to make purchases over the web.

OTHER OPTIONS-

• Cash at bank- It is the amount that a business has deposited into its bank accounts and is available for withdrawal. It represents the funds held by the business in its bank accounts, which can be used for various purposes such as making payments, investments, or withdrawals.

• Cheque- It is a written, dated, and signed instrument that directs a bank to pay a specific sum of money to the bearer of the cheque or to the person named on the cheque.

• Debit card- A debit card is a payment card that deducts money directly from a cardholder's account to pay for purchases. When a transaction is made using a debit card, the funds are immediately withdrawn from the cardholder's bank account. Debit cards are widely used for making purchases in stores, online, and for withdrawing cash from ATMs.