Certified Anti-Money Laundering Specialist Certification (CAMS) Practice Exam

The Automated Clearing House (ACH) system is designed primarily to process electronic debit and credit transactions. This system allows financial institutions to exchange various types of electronic funds transfers efficiently and securely. It enables direct deposits, such as payroll, and automatic bill payments, making financial transactions more streamlined for both consumers and businesses.

Understanding the function of ACH within the financial system is crucial. It provides a safe and reliable means for transferring money electronically, significantly reducing the need for paper checks and physical cash transfers. This efficiency and reliability are what underscore the importance of option C as the correct answer, highlighting the modern move towards digital banking solutions.

Looking at the other options, they do not align with the core purpose of the ACH. While physical cash transfers are handled through different mechanisms, the role of banking supervisors involves regulatory oversight rather than transaction processing. Similarly, while online banking interfaces are essential for customer interaction with their banks, they serve a different function than ACH, which centers on the backend processing of transactions rather than the user interface.