Economics · Money Market & Debt Instruments

Consider the following statements regarding the regulatory framework, types of instruments, and liquidity management in the Indian Debt Market: Statement 1: Treasury Bills are short-term debt instruments issued only by the Central Government at a discount to manage cash flows, available in tenors of 91, 182, and 364 days. Statement 2: Cash Management Bills (CMBs) are highly liquid tools with tenors strictly less than 91 days, issued flexibly based on cash positions, and are eligible for SLR purposes. Statement 3: State Development Loans (SDLs) are dated securities issued by State Governments through RBI auctions, eligible for SLR, but usually carry a yield spread over Central G-Secs. Statement 4: The Liquidity Adjustment Facility (LAF) framework features the Repo rate, Standing Deposit Facility (SDF) as the floor, and Marginal Standing Facility (MSF) as an emergency borrowing window. Which of the following options correctly evaluates these statements?