If the RBI decides to adopt an expansionist monetary policy, which of the following would it not do ? 1. Cut and optimize 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 :

The correct answer is (b) because increasing the Marginal Standing Facility (MSF) rate is a contractionary measure that makes borrowing more expensive for banks, thereby reducing liquidity in the economy. Option (a) is incorrect because cutting the Statutory Liquidity Ratio (SLR) is a standard expansionist tool that frees up more capital for banks to lend, which the RBI *would* do to stimulate growth. This question tests the core concept of expansionary versus contractionary monetary policy and how the RBI manipulates policy rates to control the money supply.