Final answer:
A depositor's check that requires authorization and guarantee from the bank is a Certified check. A Certified check ensures the payee that the check will not bounce due to insufficient funds, unlike a personal check. Banks and other depository institutions hold these deposits as liabilities because they must return the funds to depositors on demand.
Step-by-step explanation:
A depositor's check that may be presented to the bank for authorization and guarantee is known as a Certified check. This type of check is a personal check that the bank has verified to have enough funds available in the individual's account and has been set aside for when the check is cashed or deposited. Unlike a standard personal check, which might bounce if insufficient funds are in the account, a certified check offers the payee assurance that the check will not be returned for insufficient funds.
Depository institutions accept money deposits into various account types, such as checking accounts, savings accounts, or certificates of deposit. These deposits are viewed as liabilities by the bank because the institution must return these funds to the depositors on demand. Part of the services these institutions provide may include diversifying their portfolios by making loans or investments in different firms to mitigate risk.