What is the primary function of an adjustment layer in video editing?

The primary function of an adjustment layer in video editing is that it alters all video clips below it on the timeline. When you apply effects or adjustments to an adjustment layer, those effects flow down to all the clips beneath it. This is particularly useful for applying consistent adjustments across multiple clips, such as color grading, blurring, or applying filters, without having to apply the same adjustments individually to each clip. This feature facilitates more efficient editing and can enhance the overall look of the project by maintaining a unified visual style, making it a powerful tool in the editing process.

The other options do describe important aspects of video editing but do not reflect the primary role of adjustment layers. Color correction typically pertains to individual clips rather than affecting all clips simultaneously. Compressing audio tracks is a function related to audio editing rather than visual adjustments. Adding text overlays is an entirely separate process that involves creating and placing text layers in a project, which adjustment layers do not specifically address.