Final answer:
A clearinghouse is the entity that processes checks and electronic fund transfers for banks and other financial organizations.
Step-by-step explanation:
The entity that processes checks and electronic fund transfers for banks and other financial organizations is called a clearinghouse. A clearinghouse acts as an intermediary between banks to facilitate the transfer of funds and ensure that transactions are completed accurately and efficiently. It plays a crucial role in maintaining the stability and integrity of the financial system.
For example, when a customer writes a check from one bank and deposits it into another bank, the clearinghouse verifies the authenticity of the check, ensures that the funds are available, and facilitates the transfer of funds between the two banks.
Thus, the correct answer is B. clearinghouse.