Consider the following statements: The price of any currency in international market is decided by the
1. World Bank
2. Demand for goods/services provided by the country concerned
3. Stability of the government of the concerned country
4. Economic potential of the country in question
Which of the statements given above are correct?
Answer:
(b)
Core Books/NCERT
The price of a currency in the international market is determined by various factors, primarily the demand for goods and services provided by the country and the stability of its government. While the economic potential of a country can influence its currency, it is not a direct determinant of its price. The World Bank does not directly determine currency prices. Therefore, the correct answer is (b) 2 and 3 only.