If another global financial crisis happens in the near future, which of the following actions/policies are most likely to give some immunity to India? 1. Not depending on short-term foreign borrowings 2. Opening up to more foreign banks 3. Maintaining full capital account convertibility Select the correct answer using the code given below:

1. Statement 1 is correct. Dependence on short-term foreign borrowings makes an economy vulnerable to sudden stops or reversals of capital flows during a global financial crisis. Reducing this dependence enhances resilience and provides immunity by limiting exposure to volatile external funding. 2. Statement 2 is incorrect. While opening up to more foreign banks can have benefits like increased competition and efficiency, it can also increase the integration of the domestic banking sector with the global financial system. During a global financial crisis, this increased interconnectedness could potentially transmit shocks more easily into the domestic economy, reducing immunity. 3. Statement 3 is incorrect. Maintaining full capital account convertibility allows for unrestricted movement of capital. In a crisis scenario, this can lead to rapid capital flight, putting severe pressure on the exchange rate and foreign exchange reserves. Having some capital controls (i.e., not having full convertibility) is often considered a tool to provide some insulation or immunity from global financial volatility. 4. Therefore, not depending on short-term foreign borrowings is the policy most likely to give some immunity to India.