Final answer:
Changes in tax rates are not a tool of monetary policy; they are part of fiscal policy. The rise in supply of funds in the financial market will lead to a decline in interest rates, as it increases the available capital for lending.
Step-by-step explanation:
The tool of monetary policy that is not associated with the others is e. changes in tax rates. Open market operations are standard monetary policy tools, which include both an open market purchase of bonds and an open market sale of bonds. They are used by the central bank to influence bank reserves and interest rates, specifically targeting the federal funds rate. Adjusting the target overnight rate, either by a decrease or an increase, is also part of monetary policy. However, changes in tax rates are a fiscal policy tool, not a monetary policy tool, as they are decided by the government to influence the economy by altering the amount of disposable income individuals and corporations have.
Regarding the financial market question, a change that will lead to a decline in interest rates is c. a rise in supply of money. When there is an increase in the supply of funds in the financial markets, it leads to lower interest rates as lenders must compete to loan out their money, typically resulting in lower borrowing costs.