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?

1. The price of any currency (its exchange rate) in the international market is primarily determined by the supply and demand for that currency in the foreign exchange market. 2. Statement 1 is incorrect. The World Bank is an international financial institution focused on development and poverty reduction; it does not decide or fix currency exchange rates. 3. Statement 2 is correct. The demand for goods/services provided by the country concerned is a major factor. If a country's exports are in high demand, foreigners need to buy its currency to pay for them, increasing the demand for and price of that currency. 4. Statement 3 is correct. The stability of the government and overall political climate of the concerned country significantly affects investor confidence. A stable environment attracts investment and strengthens the currency, while instability often leads to capital flight and depreciation. 5. Statement 4 is partially correct in a broader sense but less direct than 2 and 3. While the long-term economic potential of the country influences investment flows and exchange rate trends, immediate exchange rates are more directly influenced by factors like trade flows (Statement 2), capital flows (influenced by stability - Statement 3, interest rates, etc.), inflation differentials, and central bank policies. In the context of choosing the most direct factors determining the market price, 2 and 3 are considered primary drivers reflected in supply and demand.