Explanation:

Only codes 1&3 are correct.

• A currency crisis results in a sharp depreciation of domestic currency and may force the authorities to sell foreign exchange reserves and take measures (for e.g. raise domestic interest rates) to defend the downfall in currency.
• If a country has a strong export performance, a currency crisis is difficulty to occur. Since S1 leads to greater exports, it will reduce the risk.
• Increase in government expenditure may actually increase imports and adversely affect the currency crisis. Usually, austerity in public spending is one of the measures prescribed to contain a foreign exchange or currency crisis.
• Greater flow of remittances would help avert the currency crisis since greater inflow of foreign currency (which is converted into rupees by the recipient of the remittance in India) raises the demand for domestic currency.
• Decline in the value of a country’s currency is known as Currency Crisis that negatively affects the economy by creating instabilities in currency exchange rates. The foreign currency earnings of India’s Information Technology (IT) sector and remittances from Indians abroad together can reduce the risk of a currency crisis in India.

Hence option 3rd is correct.