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A transfer switch takes two AC sources of power such as a generator and shore power, switches to one or the other and sends it to your 120v fuse panel. The inputs have one primary over the other. Two 120v AC sources active together don’t play well together.
Generally you shouldn’t see stranded wire in 120 v service except for the appliance side of receptacles. I installed a 3000 watt inverter, a new sub panel and a second transfer switch for the inverter. I used romex and didn’t notice any stranded wire for the 120. I did notice the use of 12, possibly 10 g romex for the mains.
I have to double check it out though. We mostly use solar.
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