How does a Neutral Density Filter impact exposure settings?

A Neutral Density (ND) Filter is designed to reduce the intensity of light entering the camera lens without affecting the color of the light. By doing so, it allows photographers to use longer exposure times and wider apertures than they normally would in bright lighting conditions. This capability to extend exposure time aids in various creative techniques, such as creating motion blur in flowing water or softening the movement of clouds, while the wider aperture can achieve a shallower depth of field for artistic effect.

The other options do not accurately describe the primary function of an ND filter. While it does not completely block all light, it reduces it to manageable levels. Additionally, an ND filter does not inherently reduce color saturation or change depth of focus, as its purpose is to maintain the color balance and depth of field while enhancing exposure flexibility.