If the RBI decides to adopt an expansionist monetary policy, which of the following would it not do? 1. Cut and optimise the Statutory Liquidity Ratio 2. Increase the Marginal Standing Facility Rate 3. Cut the Bank Rate and Repo Rate. Select the correct answer using the code given below:

1. Cut and optimise the Statutory Liquidity Ratio — Lowering SLR frees more funds with banks for lending, which supports an expansionary monetary stance. Verdict: RBI would do this; so this is not the correct statement.

2. Increase the Marginal Standing Facility Rate — Raising MSF makes emergency borrowing costlier for banks and is contractionary, not expansionary. Verdict: RBI would not do this.

3. Cut the Bank Rate and Repo Rate — Reducing these policy rates lowers borrowing costs and encourages credit expansion. Verdict: RBI would do this; so this is not the correct statement.

Hence, only Statement 2 is something RBI would not do under an expansionist monetary policy.