Consider the following statements: 1. The repo rate is the rate at which other banks borrow from the Reserve Bank of India. 2. A value of 1 or Gini Coefficient in a country implies that there is perfectly equal income for everyone in its population. Which of the statements given above is/are correct?

1. Statement 1 is correct. The repo rate is the interest rate at which the central bank of a country (in India, the Reserve Bank of India) lends money to commercial banks, typically against government securities. It's a key tool of monetary policy used to control liquidity and inflation. 2. Statement 2 is incorrect. The Gini Coefficient is a measure of statistical dispersion intended to represent the income or wealth inequality within a nation or social group. A Gini coefficient of 0 represents perfect equality (everyone has the same income), while a value of 1 represents maximal inequality (one person has all the income, and everyone else has zero). Therefore, a value of 1 implies perfect inequality, not perfect equality.