Consider the following statements regarding Repo rate:
1. At this rate, the Central bank borrows money from commercial banks to maintain liquidity.
2. It is used by banking institutions to manage their daily or short term liquidity.
3. Repo rate is increased to reduce liquidity in the economy.
Which of the statements given above is/are correct?
1
1 and 2 only
2
2 and 3 only
3
1 and 3 only
4
1, 2 and 3