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
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
Select the correct answer using the codes given below.
a) 2 and 3 only
b) 3 and 4 only
c) 1 and 4 only
d) 1, 2, 3 and 4
a) 2 and 3 only
b) 3 and 4 only
c) 1 and 4 only
d) 1, 2, 3 and 4
Ans- a
Explanation– The World Bank is a vital source of financial and technical assistance to developing countries around the world. It has no relation with price of currency in international market. So we can eliminate option c and option d.
Price of any currency is determind like price of any other commodity i.e, by forces of demand and supply. Demand for a currency is created by two factors, its exports that is other countrieswho want to buy, or the investments that people want to make in that currency. Therfore, Option 2 is correct.
Stability of the government is very important factor too as an unstable govt may not be able to take effective economic decisions which will in turn affect export and import.
Considering all these option a is correct
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