What of the following best describes the use of open market operations to influence the money supply?

Open market operations involve the buying and selling of government securities by a central bank to regulate the money supply. When the central bank purchases securities, it injects liquidity into the banking system, increasing the money supply and lowering interest rates. Conversely, selling securities withdraws liquidity, reducing the money supply and potentially raising interest rates. This tool is essential for implementing monetary policy and achieving economic stability.