Define the term overjrd9n k l7tra1)b8ui3valued currency.

  

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 persistent current account o2dyj(u. ila6e lm/;iim n* hb0p -v-msurplus will have the following consequences excen l*o/62l d0api mi- b.;ei- (yhjmvumpt

  What will be the impact of a curren .jj cchpl g;+zpf;ea::3 7onrojiz22t account deficit on the country’s currency under a floating exchange rrl2:opc:hza ;znc +f po3jj2g.jie; 7 ate 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 the balance of tr kn..*wbbf:gdf6;nz ,j 7u pddade (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 followin6o1h4rgj,c 3*eriqowg statements is not consistent with the likely effect of an increase in interest rates in M whi*g 6rjco4,3roqe 1alaysia?

  Which one of the following is not included in the cunrbs)i1x.b8r itz(bgb7xg g j:v+ ntm5cg9: *rrent account of the balance onnm5v( 7gr*tr8ixx g:sjb1g).zb9bi+ c :tg bf payments (BOP)?

  Which of the following is an expenditure-switching po/jgy+/t -,i yxjw:ya9mtrk d,licy to correct a persistent current accou ktj/ia9y ,xrtyg wd,y j:m/+-nt 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 tsv0h(q;s*ka xrade deficit and the sum of the price elasticities of demand fork vqs (sa;h0*x exports and imports is less than 1. What will be the impact of currency depreciation on the country's trade balance?

  Select which of the following would not be con:spk ksz1yr22sistent with a trade deficit:

  Which of the following represents an invisible export in the balance oxuswo,+(1sl t f payments (o l+,1sws (txuBOP) of the US?

  Select from the table below the appropriate transmission mechanism iqc ; zb*.5v*e5;cgvjd uc9b 3hfvf)wof a contractionary monetary policy which involves raisingj3fh5)id bccq w; 5v.bzvu;e**vcg f9 interest rates to 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 lihzse.qu6ub v6;ci-h+ kely aid in achieving which of the following policy objectivehu b.h;es6 izqvc-6u+s?

  Which of the following is the most likely response for a country with a/j:r9z s +s dfhuzw+.n fixed exchange rate expe 9+n:rh.swzu/zdj sf+ riencing a sharp fall in net exports?

  A country has a fixed excad+vd8wo .1 ce8 ychut1ez jmjn9 l.-i,fze*2hange rate with the UK pound where one unit of its currency ih8t. 2dzwjzef-vcaljc eiu1 8*,md. y 1on+ 9es worth £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 iszv uet4a yi;72qcbs cgcw2;6x. 92tjd not a reason to adopt a floating exchange rate?

  Which of the following policies is consistent with its1.b ycj:znq86 ;kmpbys0/f rs objective?

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