The price of a currency in the international market is not regulated by a centralized institution such as the World Bank, hence option 1 is incorrect. The value of a currency is determined by currency exchange markets, which function based on supply and demand mechanisms.
The demand for goods/services provided by the country concerned (option 2) influences the currency price because if global demand for a country`s goods or services is high, it increases demand for its currency, thereby raising its value.
The stability of the government (option 3) is also a factor as political instability can lead to economic instability and hence a decrease in the value of the currency.
Option 4, the economic potential of a country, is not specifically linked to the value of a currency. It may have longing impact on a currency’s value but it`s not a direct factor. Therefore, it is not included, and Options 3 and 4, and 1 and 4 are incorrect.
Therefore, answer 2, which suggests that the price of a currency is decided by the demand for goods/services and the stability of the government, is correct.