Consider the following statements regarding Currency Swap Arrangements:

Statement I: Currency Swap Arrangements help ensure liquidity during financial crises by providing access to foreign currencies.

Statement II: Such arrangements are particularly useful in reducing a country's dependence on the US dollar for international trade.

Which of the following is correct with respect to the above statements?

1
Both Statement I and Statement II are correct, and Statement II explains Statement I.
2
Both Statement I and Statement II are correct, but Statement II does not explain Statement I.
3
Statement I is correct, but Statement II is incorrect.
4
Statement I is incorrect, but Statement II is correct.

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