Consider the following statements with reference to Long Term Repo Operations (LTRO):
1. It is a tool under which the central bank provides one-year to three-year money to banks at the prevailing repo rate.
2. LTRO helps in injecting liquidity in the banking system and brings down the cost of funds for the banks.
Which of the statements given above is/are correct?
1
1 only
2
2 only
3
Both 1 and 2
4
Neither 1 nor 2