Consider the following statements regarding RBI acting as a 'lender of last resort for banks:
1. It is done to prevent possible failure of the banks and to protect the interest of the depositors
2. RBI does it only if the troubled financial institution has exhausted all the resources it can obtain from the market and from the RBI’s regular liquidity facilities like LAF, MSF
3. It does not ensure financial stability in the economy
Which of the statements given above is correct?
1
1 and 2 only
2
2 and 3 only
3
1 and 3 only
4
1, 2 and 3