Define the term overvalued c q0slcd9 .t9jb7 6 3mi:ocxnbsurrency.

  

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 surplus will heg x 8lz+p3tgnf) gl4:)1bhcmave the following consequences exc)1 + fc)bz4etgp8lgm 3 lxhgn:ept

  What will be the impact of a current account deficit on the country’s zr6+r0p 1cs1tfuf d 7ncurrency under a floating exchang r6nr+0tpdc1f u zf17se 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 improveeo3w) f)ruqe * 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 following statement(f;vch6wx 3xms is not consistent with the likely effect of an increase in iwhf v3(x;6xc mnterest rates in Malaysia?

  Which one of the following is not included in the current account of the ba )h6 d lb/:uhv9kwgd;alance of paymuv dwg: ;hha)9kdl /6bents (BOP)?

  Which of the following is an expenditure-switching policy to xtoq9cl*)r*wr 18 ig xfi+r*j correct a persistent current account deficit? 1rq r9xtwicr +g8jo**l*i)f x

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

  Assume a country has9r7:-gmyhv ud a trade deficit and the sum of the price elasticities of demand for exports and imports is less than 1. What will be the impact of currency depreciation on t:grdv uh-ym79 he country's trade balance?

  Select which of the followi t2bfpt-+w 7uq vu5s.kgac 0f4ng would not be consistent with a trade deficit:

  Which of the following represents an invisible export in the balance of paj b9; f.c5ws8zp jy)op0eg9kvyments (BOP) of the US;jc 50beo)sygv.kz wf89 jp9p ?

  Select from the table below the appropriate transmission mechanism of a conts0zvhoi y5 h8)ractionary monetary policy0h8zsi 5vohy ) which involves raising 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 likely aid in achieving (wbdb(fx/.xwe1) wkr which of the following policy objectivex w /f.)(bek(drbwxw1s?

  Which of the following is the most likely response for a country with a fix3iorqi p.a1a1 u5 b+zyed exchange rate experiencing a . oz15aiq ir ap+1buy3sharp fall in net exports?

  A country has a fixed excl0k f (;pastry6-k;75 qh mzwjre04vdhange rate with the UK pound where one unit of its currency ika4(s-ze76qdrjrwt;p0kfyl 5 ;m h0v s 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 is not a 4ov*0 nviw::3g i ppbznrr-6q reason to adopt a floating exchange rate?

  Which of the following policies is consistentixf2 lsss/klzgi,9t8;rj-y ol+ , s:j 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