Define a “forwarding” bank in ACH transactions.

The definition of a "forwarding" bank in ACH transactions is accurately represented by the description of a bank that acts as an intermediary, forwarding ACH transactions from one bank to another. This role is essential in the ACH network, as it allows for the efficient processing and routing of transactions between originating and receiving banks.

In practice, the forwarding bank takes the responsibility of transmitting the ACH transactions initiated by one financial institution to another, ensuring that funds are transferred accurately and securely. This function is critical for the smooth operation of the ACH system, which relies on the collaboration of multiple banks to handle various types of electronic payments, including direct deposits and bill payments.

The other options do not accurately reflect the role of a forwarding bank in the context of ACH transactions, making the first option the correct choice.