Define the term overvalued curre4gqqe(o 8ia/ qncy.

  

Year	Official Exchange Rate (peso per euro)
2020	56.19
2023	60.22

A Filipino firm pays its German-based consultant 200 000 euros every year. Using the information in the table above, what is the increase in the cost of the payment between 2020 and 2023?

  A country with a persismv.1abt.u 9 t5x cvn5wtent current account surplus will have the following consequenm1cbnv . tu av.t9x5w5ces except

  What will be the impact of a current accoun) qe u1 .xaat(hjiiv10t deficit on the country’s currency under a floating exchangequat 1h()vaj .10xiei rate system?

  

	US$ (millions)
Imports of services	500
Exports of goods	450
Net capital transfers	45
Imports of goods	120

Calculate the balance on the current account from the table above.

  Depreciation of currency will help improve iv-mvxup pxg*2/6pu-the balance of trade (BOT) if:

	Price elasticity of demand (exports)	Price elasticity of demand (imports)
A.	0.6	0.3
B.	0.5	0.6
C.	0.3	0.7
D.	0.5	0.5

  Which of the followi:ny -hakew w/,ng statements is not consistent with the likely effect of an increase in interest rates in ewyn/,a : wk-hMalaysia?

  Which one of the following is not included in the current account of thz tok;cmb)5 9fe balance of payments (BOP)?9f ctmbzo;)k5

  Which of the following is an expenditure-switchin)h yiclkt2-fe caq 4) x,m0.yfg policy to correct a persistent currenttiey )4acq)m,xf c2. 0lk y-hf account deficit?

I. Imposition of tariffs
II. Revaluation of currency
III. Increasing interest rates
IV. Granting subsidies to export-oriented industries

  Assume a country has a trade deficit anfeli. jl6w.- x+ 1nc hcsg98qvd the sum of the price elasticities of demand for exports and imports is less than 1. What will be the impact of currency depreciation -h16l+qgjc8i . 9nx vwflc.se on the country's trade balance?

  Select which of the following would not be consistent with a tkx+i mf74w 1qjrade deficit:

  Which of the following represents an invisible export in the balance of paym bsor-lb zsb34gp:10rents (BOP) os 0g43lbsb-:or1r z pbf the US?

  Select from the table below th6d b;3cx4y y3ypu+ vq;zgk/eie appropriate transmission mechanism of a contractionary monetary policy which involves raising interest rates to3kg+ybu 4i36; /;dxyz qcpy ev achieve an external balance.

	Aggregate Demand	Real GDP	Net Exports
A.	Decreases	Decreases	Increase
B.	Increases	Increases	Decrease
C.	Decreases	Decreases	Decrease
D.	Increases	Increases	Increase

  

Year	Philippine Peso per Euro
2020	56.19
2023	60.22

Using the information from the table above, how may the change in the exchange rate between 2020 and 2023 affect the inflation rate in the Philippines from the choices below.

I. Increased net exports will increase aggregate demand, causing demand-pull inflation.
II. Higher costs of imported intermediate goods, machinery, and equipment will cause short-run aggregate supply to decrease, leading to cost-push inflation.
III. Aggregate demand will fall, leading to deflation.
IV. Aggregate supply will increase, leading to deflation.

  
Given the diagram above, suppose the equilibrium exchange rate for the Canadian dollar (CAD) is at $e_1$. If the Canadian government wishes to fix the exchange rate at $e_2$, it can employ all of the following policies except:

  Devaluation would most likely aid in achieving which of the following poliiaa)z8j r2c+wzq, gn2 cy obje+ 8)2c a2gqwizrnaz,jctives?

  Which of the followini arr) 8 d7,p:xk)xapdg is the most likely response for a country with a fixed exchange rate experiencing a sharp fall in net exad r7:r)di)a kppx,8xports?

  A country has a fixed exchange rate with the UK pound where onv32 j tc nk/0akf22 6wlw-pnnoe unit of its currency is wor2 /kj0 wfvan lt3 k2w26pn-conth £0.80
£0.80. Which of the combinations of actions by the central bank would be taken if that value changed to £1?

	Own currency	UK pounds
A	Buy	Buy
B	Buy	Sell
C	Sell	Sell
D	Sell	Buy

  
Which of the following would cause the shifts from point $x$to point $z$in the above diagram depicting supply and demand for US$on the foreign exchange market?

  Which of the following is not a reason to cukh9e k*nk7 1adopt a floating exchange rate?

  Which of the following policib2-iesgtawu.4,h2wq q;a / uwes is consistent with its objective?

	Policy	Objective
A.	Devaluation	Reducing inflation
B.	Revaluation	Reducing unemployment
C.	Devaluation	Reduce a current account surplus
D.	Revaluation	Improve living standards