These statements pertain to the monetary approach to exchange rates.

Which of the following statements are correct?

In the monetary approach the demand for money stems from real income,which is capturing the transactions in the economy.

In the monetary approach, real interest rates adjust to bring the money market in equilibrium.

In the monetary approach, the price level adjusts to bring the money market in equilibrium.

The central bank plays no role in determining the price level in the economy.