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?

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CollectorBabu · Accepted Answer

Correct Answer: 2 and 3 only. Statement 1 is not correct as World Bank lend money to other governments and is not involved in deciding price of any currency in international market. Statement 2 is correct as currency depends on pricing of demand/supply of goods and services. Statement 3 is correct as currency rate also depends on countries stability. Statement 4 is not correct as currency cannot be decided based on economic conditions. We see that only statements 2 and 3 are correct, so best option is B..

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