Consider the following statements: The price of any currency in international market is decided by the<br/>1. World Bank<br/>2. Demand for goods/services provided by the country concerned<br/>3. Stability of the government of the concerned country<br/>4. Economic potential of the country in question.<br/><br/>Which of the statements given above are correct?

1. World Bank — Incorrect. The World Bank does not decide the price of currencies in the international market; exchange rates are generally determined by forex market forces and, in some cases, central bank intervention.
2. Demand for goods/services provided by the country concerned — Correct. Higher foreign demand for a country’s exports raises demand for its currency, affecting its exchange value.
3. Stability of the government of the concerned country — Correct. Political stability improves investor confidence and capital inflows, which can strengthen demand for the currency.
4. Economic potential of the country in question — Not taken as a direct determinant here. While it may influence investor sentiment indirectly, the standard immediate factors are trade demand, capital flows, and political stability.

Hence, statements 2 and 3 only are correct.