The buying and selling of securities from banks and investors is handled through the

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Open market operations refer to the buying and selling of securities by the central bank in order to influence the money supply and interest rates. This is the primary tool used by central banks to conduct monetary policy and manage the economy. By buying securities, the central bank injects new money into the economy, while selling securities withdraws money from circulation. This can have a ripple effect on interest rates, inflation, and economic growth. The other options listed (discount rate, reserve requirements, prime interest rates) are also tools used by central banks, but they are not typically used in the buying and selling of securities.

The Buying and Selling of Securities from Banks and Investors