What fiscal operations involve the buying and selling of bonds to influence the money supply?

Open market operations refer to the buying and selling of government bonds by a country's central bank in order to manage the money supply within the economy. When the central bank purchases bonds, it injects liquidity into the banking system, increasing the money supply and encouraging lending and investment. Conversely, selling bonds takes money out of circulation, reducing the money supply and potentially curbing inflation.

This mechanism is central to monetary policy, allowing the central bank to either stimulate the economy or restrain it based on current economic conditions. The effectiveness of open market operations rests on the relationship between the amount of reserves banks hold and their lending capacity, which directly impacts overall economic activity.

Other options, while related to financial markets, do not specifically pertain to the deliberate manipulation of money supply through bond transactions as open market operations do.