Explanation:

Correct Option: (c) Explanation:  Statement 1 is correct : It is the rate at which the Reserve Bank is ready to buy or rediscount bills of exchange or other commercial papers.  Statement 2 is correct : This rate has been aligned to the MSF rate.  Statement 3 is incorrect : The current Bank Rate (as on 22 August) is 5.65%, 25 basis point above the Repo Rate. Bank Rate  It is the rate at which the Reserve Bank is ready to buy or rediscount bills of exchange or other commercial papers.  This rate has been aligned to the MSF rate and, therefore, changes automatically as and when the MSF rate changes alongside policy repo rate changes. Marginal Standing Facility (MSF)  A facility under which scheduled commercial banks can borrow additional amount of overnight money from the Reserve Bank by dipping into their Statutory Liquidity Ratio (SLR) portfolio up to a limit at a penal rate of interest. This provides a safety valve against unanticipated liquidity shocks to the banking system. Corridor  The MSF rate and reverse repo rate determine the corridor for the daily movement in the weighted average call money rate.