In India, the central bank's function as the 'lender of last resort' usually refers to which of the following?1.Lending to trade and industry bodies when they fail to borrow from other sources2.Providing liquidity to the banks having a temporary crisis3.Lending to governments to finance budgetary deficitsSelect the correct answer using the code given below

1. A

   1 and 2

   1 and 2. LoLR is to banks, not trade bodies.

2. B

   2only

   2 only. Liquidity to solvent banks in a temporary squeeze.

3. C

   2 and 3

   2 and 3. Financing the budget is a separate government-banker role, not LoLR.

4. D

   3 only

   3 only. Wrong function.

Summary. Official key is (b) 2 only. Lender of last resort means the central bank supplies emergency liquidity to banks. It is not a finance window for industry associations or a routine deficit-finance line.