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Here is a copy+pasted definition...
Transactive memory is a psychological hypothesis first proposed by Daniel Wegner in 1985 as a response to earlier theories of "group mind" such as groupthink.[1] A transactive memory system is a mechanism through which groups collectively encode, store, and retrieve knowledge. Transactive memory was initially studied in couples and families where individuals had close relationships but was later extended to teams, larger groups, and organizations to explain how they develop a "group mind",[1] a memory system that is more complex and potentially more effective than that of any of its individual constituents. A transactive memory system includes memory stored in each individual, the interactions between memory within the individuals, as well as the processes that update this memory. Transactive memory, then, is the shared store of knowledge.
In simple terms...
A transactive memory is a psychological hypothesis. It is a system in the brain which allows human's to encode, store, or get information.
For example...
let's say I learn 5 colors when I'm younger. My "transactive memory" will store it and will allow my brain to "retrieve" the information to allow me to remember colors I previously "stored".
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