How is money transferred from one bank account to another bank account?

cbse
economics
money-and-credit
cbse-class-10
cbse-class-10-social

#1

How is money transferred from one bank account to another bank account? Explain with an example.

Answer:
Money Transfer from one bank account to another bank account:
If a person has to make a payment to his or her friend and writes a cheque for a specific amount, this means that the person instructs his bank to pay this amount to his friend. His friend takes this cheque and deposit in his account in the bank. This said amount is transferred from one bank account to another bank account.