Final answer:
Fiscal Policy is not one of the tools of Monetary Policy;
the central bank's tools are open market operations, reserve requirements, and discount rates.
Step-by-step explanation:
The tool that is NOT one of the tools of Monetary Policy is d) Fiscal Policy. The three traditional tools used by a central bank to conduct monetary policy are open market operations, reserve requirements, and the discount rate.
- Open market operations involve buying and selling government bonds with banks to influence bank reserves and interest rates.
- Reserve requirements determine the minimum reserves a bank must hold.
- Discount rate is the interest rate central banks charge commercial banks for loans.
Fiscal Policy, on the other hand, involves government spending and taxation decisions and is not a tool used by central banks for monetary control.