With reference to the Indian economy, consider the following statements : 1. A share of the household financial savings goes towards government borrowings. 2. Dated securities issued at market-related rates in auctions form a large component of internal debt. Which of the above statements is/are correct?

1. Statement 1: Household financial savings include deposits in banks, investments in insurance, provident funds, etc. Financial institutions often invest a portion of these funds in government securities. Therefore, a share of household financial savings indirectly finances government borrowings. This statement is correct. 2. Statement 2: Internal debt is the part of the total government debt owed to lenders within the country. Dated securities (government bonds with a fixed maturity period) issued through auctions at market-related rates form the most significant component of the Union Government's internal debt portfolio. This statement is correct. 3. Since both statements are correct, the correct option is (C).