Which of the following statement regarding Liquidity Adjustment Facility (LAF) is/are correct?
1. It is used while helping banks in resolving cash shortages.
2. It is performed by lowering the repo rate.
3. Repo rate is an instrument under LAF devised by the RBI.
4. RBI can use it to control inflation.
Select the correct answer using the codes given below.
1
1, 2 and 4 only
2
1, 2 and 3 only
3
1, 3 and 4 only
4
1, 2 3 and 4
5
4 only