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Open market operations are a key tool of monetary policy primarily focused on managing the money supply within an economy. This is accomplished through the buying and selling of government securities, such as treasury bonds or bills, which directly influences the amount of reserves that banks hold. When the central bank buys securities, it injects liquidity into the financial system, making more money available for banks to lend and spend, thereby expanding the money supply. Conversely, when the central bank sells securities, it removes liquidity from the financial system, contracting the money supply.

The other options pertain to different aspects of economic policy or monetary regulation. Setting tariffs relates to trade policy and affects import and export activity but does not influence the money supply directly. Regulating banks involves oversight to ensure financial stability and consumer protection but is separate from the direct actions of buying or selling securities. Establishing credit limits typically pertains to lending practices and consumer credit rather than the overarching management of the money supply through open market operations. Thus, buying and selling government securities accurately captures the essence of what open market operations achieve in the context of monetary policy.