What is the primary effect of open market operations on interest rates in an economy?

Open market operations refer to the buying and selling of government securities by a central bank, like the Federal Reserve, to control the money supply in an economy. When the central bank buys securities, it injects money into the economy, increasing the money supply. This increase in money makes borrowing cheaper, which usually leads to lower interest rates. Conversely, if the central bank sells securities, it takes money out of circulation, which can raise interest rates since there is less money available for borrowing. For example, if a central bank buys bonds and lowers interest rates, a business might find it cheaper to take out a loan to expand, stimulating economic growth.