Define the term overv nw3hm2 3;amaa hd*bdj(- :jwaalued 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 surplutamsa5 kg4p 5w4:4tots will have the following consequence kso4g5tpa 4a4:5mwtts except

  What will be the impact of a current account deficit on the m/fc5dr),j j ucountry’s currency under a floating excha/j5djf m),ru cnge 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 the balance of trade (BOT)3ex+ +phtlcj2l y yf16 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 statements is not consistent with the likes;ku w6)at 0xwrvv -vfd+t2 r2ly effect of an increase in inter-s2vav+f )t ;twvrr du6w0k2xest rates in Malaysia?

  Which one of the following is not included in the current account of the b5 8vo2eaffjt)zw;j h/alance o5 vfta/ f;2jw8)ozje hf payments (BOP)?

  Which of the following is an expendi f at-*bdf6u9wmp *jg*ture-switching policy to correct a persistent current account defici*d9 wjf-*mg6tpf* baut?

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 9ijil0,(iyxr jt(m n3 and the sum of the price elasticities of demand for exports and imports is less than 1. What will be the impact of currency depreciatiir(i jntm0jy( ,x9l i3on on the country's trade balance?

  Select which of the following would not be consistenqd;2 j-8 7h:sq l-rbgwdse:39nhi ckh t with a trade deficit:

  Which of the following represents an invisibl 6 ph4k u.-uvqlxfq6*ve export in the balance of payments (BOP) o kuvf4 h -.6lp*quqx6vf the US?

  Select from the table below the appropriate transmission mech pwp(p4;+t wgbanism of a contractionary monetar+tp b4 gwppw(;y policy 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 which of the followiknv95 :/ytz jzng policy objecjvztz5/ nk y:9tives?

  Which of the following is the most likely response for a country with a ffw d./s j50qmz(rb4);mjf rheixed exchange rate experiencing a sharp fall irq)r( 0d;j mw/5mj.sh fb4z fen net exports?

  A country has a fixed exchange rate with the UK pound where one u s9mwdn)a 2nw,nit of its currency is waw ,nm2wdn)s9orth £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 adopt a floating exchang:4a47o7gfxcc k 8rwjlq j.fh 3e rate?

  Which of the following policies is consistent with its .m bp(g)8b0 xx1iky kfobjective?

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