What is the term for money and money substitutes that are paid out?

The term for money and money substitutes that are paid out is indeed cash payments. Cash payments refer specifically to transactions where actual currency, coins, or other equivalents, such as checks or electronic transfers, are exchanged as a medium of economic exchange. This is the fundamental concept in financial transactions, representing any form of liquid payment that a person or organization can use immediately.

Understanding cash payments is crucial because it indicates the direct flow of funds from one entity to another, reflecting available liquidity at any given moment. They are often characterized by their immediate effect on one’s cash balance, providing instant settlement of obligations, which is why they are a foundational concept in accounting and finance.

The other options represent different financial concepts that do not specifically define the act of paying out money or money substitutes. Expense payments usually relate to the costs incurred by a business and may or may not be settled in cash. Credit payments involve a system where goods or services are paid for over time with borrowed funds. Asset payments suggest transactions involving the exchange of valuable resources rather than direct monetary transactions. Thus, cash payments are the most accurate and appropriate term for the description given in the question.