How to use IN and BY in this context?

[Kerry]

Common Errors in English, Advanced Level

ESL/EFL Test #8 "Admire his Achievement", question 5

The waiter insisted that I paid the bill with cash although I wanted to pay by cheque.

(a) insisted
(b) paid
(c) with
(d) by

Common Errors in English, Advanced Level

ESL/EFL Test #8 "Admire his Achievement", answer 5

The waiter insisted that I paid the bill in cash although I wanted to pay by cheque.

Correct entry: in
The error was: (c) with

You have found the error but your entry is incorrect.
The waiter insisted that I paid the bill by cash although I wanted to pay by cheque.
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How to use IN and BY in this context?

Kerry

[Pamela]

The waiter insisted that I paid the bill in cash although I wanted to pay by cheque. correct

[Alan]

Hi,

If you pay in cash, that means you actually use real money -notes and coins. In the same way you say make something in wood meaning wood is the material you use.

If you pay by cheque/credit card, you are referring to the method of payment.

Alan
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English as a Second Language
You can read my ESL story Present Simple

[Nessie]

How about "insisted" and "paid"? I think the word "paid" here should be "pay" because it is in subjunctive mood (insisted)
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:(... something we never have again, I know... I guess I really really know.. :(

Sorry seems to be the hardest word...

[Mister Micawber]

.
Yes, I agree, Nessie-- in careful English. Nevertheless, many native speakers no longer use the subjunctive here.
.
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Native English teacher at Mister Micawber's

[Yankee]

.
In this context, the use of 'pay' would be pretty typical in AmE. 'Paid' actually sounds a little strange to my American ear in this sentence.
.
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"Nearly all men can stand adversity, but if you want to test a man's character, give him power." ~ Abraham Lincoln