The only payment system that is instantly convertible without intermediation is _______.

Solution (By Examveda Team)

The correct answer is D: Cash
Let's break down why:

A. Credit card: Credit cards involve a bank or financial institution acting as an intermediary.
When you use a credit card, the transaction needs to be processed through the card network (like Visa or Mastercard) and then the bank.

B. Accumulating balance: This isn't a standard payment system.
It sounds like something where a balance builds up over time, but it still wouldn't be instantly convertible without some process.

C. Stored value: Stored value cards (like gift cards or prepaid cards) do have value stored on them, but they usually require a specific system to redeem or convert that value.
There's often some processing involved, making it not instantly convertible.

D. Cash: Cash is the only option that allows for immediate and direct exchange of value without the need for any intermediary or processing.
You hand over the cash, and you immediately receive the goods or service.