Which of the following best describes a deposit?

A deposit refers to the money that individuals or entities place into accounts at a financial institution. This money can be in the form of cash, checks, or electronic transfers, and it becomes part of the institution's liabilities since they hold the funds on behalf of the depositor. Deposits typically earn interest over time, depending on the type of account, such as savings accounts or term deposits.

This definition emphasizes the essence of deposits as the primary means through which customers interact with banks and credit unions. It highlights the relationship between the depositor and the institution, wherein the latter is obligated to return the funds upon request, facilitating liquidity for the depositor while the institution can use these deposits to fund loans and other financial activities.