This type of memory improves processing by acting as a temporary high-speed holding area between the memory and cpu is what?

Cache memory

Explanation:

Cache memory stores data temporarily before it went to the hard disk. During times where the user is doing something in the computer but has not clicked the save button yet, it will not be transferred to any storage devices. But the work is still there. You can see the document or images on your screen. The memory that saves it is called cache. But cache memory is not permanent. Meaning to say, the moment of a sudden power off, all data in the cache will be wiped out. Why cache memory? Since data stored in there are not permanent, it is faster (or highspeed). Once that it is transferred to a permanent storage like the hard disk, data retrieval will be a bit slower as data needs to be stored in allocated space and arrangement.

that would be my answer.