Which of the following is used by the central bank to control the rate of interest

Open market operation is used by the central bank to control the rate of interest. In simple terms, open market operations refer to the central bank buying or selling government securities, such as bonds, in the open market. When the central bank buys securities, it injects money into the banking system, increasing the overall supply of money and lowering interest rates. On the other hand, when the central bank sells securities, it removes money from the banking system, reducing the overall supply of money and raising interest rates. By using open market operations, the central bank can influence the interest rates and, in turn, control inflation and support economic growth.