How do inductors operate in electrical circuits?

Inductors operate by storing energy in a magnetic field when electrical current flows through them. As current passes, it creates a magnetic field around the coil of wire that makes up the inductor. When the current through the inductor changes, the magnetic field also changes, inducing a voltage that opposes that change in current, according to Lenz's Law. This property of inductors allows them to store energy temporarily and release it when needed, which is essential in various applications like filtering, energy storage in power supplies, and in oscillating circuits.

The other choices do not accurately represent the fundamental operation of inductors. For instance, while some components may dissipate energy as heat, inductors are primarily designed for energy storage. They do not inherently decrease impedance nor do they typically function as voltage boosters, as those functions relate to different types of electrical components or circuit arrangements.