Explanation:

Both statements are correct.

• It is the interest rate at which the central bank of a country lends money to commercial banks. Hence, a decrease is RR means money is infused into the economy which makes lending cheaper thereby encouraging enhanced borrowing. This leads to economic growth.
• Reverse Repo is the interest rate paid to commercial banks when they deposit their excess funds in the central bank or when the central bank borrows money from them. At a given point in time, the reverse repo rate provided by RBI is generally lower than the repo rate. While repo rate is used to regulate liquidity in the economy, reverse repo rate is used to control cash flow in the market.

Hence option 4th is correct.