What is a method used to reduce exceptions processing in FedNow?

The correct answer highlights the significance of using a reliable time server as a method to reduce exceptions processing in FedNow. In the context of payment systems, timing plays a crucial role. Transactions must be processed within a specific timeframe, and any discrepancies in time can lead to errors or exceptions. Utilizing a reliable time server ensures that all transactions are synchronized with a standardized time reference. This synchronization helps in mitigating issues that arise from timing errors, enabling smoother transaction processing and decreasing the likelihood of exceptions.

The other options, while useful in their own right, do not specifically address the issue of time discrepancies that can lead to exceptions in the same direct manner as using a reliable time server. Regular staff training is essential for overall operational efficiency but does not directly impact transaction timing. Automated tools can streamline processes, but without accurate timing, they might still encounter exceptions. Daily transaction audits are crucial for oversight and ensuring compliance, yet they typically address issues post-processing rather than preventing exceptions through timing accuracy.