Option 1 -> The buying and selling of government bonds by the central bank to regulate money supply.
Option 2 -> The process by which commercial banks create money through lending based on deposits.
Option 3 -> The total amount of money available in the economy at a given time.
Option 4 -> A specific tool where the central bank borrows from banks by selling securities temporarily.
Hence, Option 1: Open Market Operations -> Open Market Operations (OMO) is a monetary policy tool used by central banks to control liquidity and money supply in the economy. When the central bank buys government bonds from the market, it injects money into the economy (expansionary policy). When it sells government bonds, it absorbs money from the economy (contractionary policy). This is one of the most important and frequently used tools for monetary management. -> correct