Final answer:
A transaction processing system is integral to banks, serving multiple purposes by recording and processing transactions in real-time, generating reports for decision-making, and automating tasks to improve efficiency.
Step-by-step explanation:
The purpose of a transaction processing system (TPS) used in organizations encompasses several crucial functions which are designed to handle the vast amounts of transaction data that financial institutions such as banks process on a daily basis. Firstly, a TPS is used to record and process business transactions in real-time, ensuring that all financial transactions are captured accurately and without delay. This real-time processing helps to reduce transaction costs which are associated with finding a lender or borrower, thereby decreasing the necessary time and effort it takes for banks to bring savers and borrowers together.
Another important purpose of a TPS is to generate financial reports for decision-making. These reports are essential for management to analyze and understand the financial aspects of the organization and to make informed decisions. Finally, a TPS is utilized to automate routine tasks and improve operational efficiency. By automating these tasks, the system minimizes human error, reduces manpower requirements, and improves the overall speed of transactions.
To summarize, the purpose of a transaction processing system in organizations can be explained by all of the options given, including real-time recording and processing of business transactions, generation of financial reports, and automation for greater efficiency.