Consider the following statements:
Statement I: Financialization refers to the process where financial markets and institutions gain greater influence over economic policy and outcomes.
Statement II: Financialization involves moving investments from traditional physical assets to financial assets.
Statement III: Financialization in developing countries can lead to crises when financial innovations grow faster than economic growth.
Which one of the following is correct in respect of the above statements?
1
Both Statement II and Statement III are correct and both of them explain Statement I.
2
Both Statement II and Statement III are correct, but only one of them explains Statement I.
3
Only one of the Statements II and III is correct and that explains Statement I.
4
Neither Statement II nor Statement III is correct.