A transaction refers to any financial activity that involves the exchange of goods, services, or assets between two or more parties. In the context of banking and finance, transactions include payments, withdrawals, deposits, and transfers of funds. Each transaction is recorded by financial institutions and appears on account statements, providing a clear history of financial activities. Transactions can be conducted electronically, by check, or in person, and are essential for tracking financial health, ensuring accountability, and managing records for both personal and business finances.