A financial transaction is an exchange of money or goods between two or more parties. It can involve the transfer of funds from one account to another, the purchase of goods or services, or the exchange of currency. Two common examples of financial transactions are loans and deposits. A LOAN is a sum of money borrowed from a lender, usually with interest, that must be repaid over a period of time. A DEPOSIT is a sum of money placed into an account, such as a savings or checking account, that earns interest over time.