In India, the central bank's function as the 'lender of last resort' usually refers to which of the following? 1. Lending to trade and industry bodies when they fail to borrow from other sources 2. Providing liquidity to the banks having a temporary crisis 3. Lending to governments to finance budgetary deficits Select the correct answer using the code given below.

1. The function of the 'lender of last resort' is a crucial role performed by a central bank to ensure the stability of the banking system. 2. Statement 1 is incorrect. The central bank does not typically lend directly to trade and industry bodies, even if they cannot borrow from other sources. This function is usually performed by commercial banks or other financial institutions. 3. Statement 2 is correct. This statement accurately describes the core meaning of the 'lender of last resort'. The central bank provides emergency liquidity support to commercial banks that are solvent but face a temporary shortage of funds and cannot secure them from the market. 4. Statement 3 is incorrect. While the central bank may lend to governments to finance budgetary deficits (e.g., through Ways and Means Advances or by purchasing government bonds), this is considered part of its role as banker to the government or related to monetary policy operations, not the 'lender of last resort' function, which specifically pertains to supporting the banking sector's stability.