Define the term overvalu x:pb- t i;.jkvo90 ( wdi:avwx0zjjz(ed 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:x2kem 5 w7exq3+ xxj17jnvpg account surplus will have the following consequencn+3ex vwxg5x 7qpk2 jx1:7mej es except

  What will be the impact of aml5 s: l3i l9k5xzk+ht current account deficit on the country’s currency under a floating exchange kz95t 3hl s5:klxmil+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 baom4qv(rrqfcwpc1o4 -xw* j kht,:8. mlance 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 statements is ng85xi 5f.gxx not consistent with the likely effect of an increase in interest rates in Malaysi5 ggxixx85nf .a?

  Which one of the following is not included in the curriv.j3c 4zt h(4 99s)ghf j qalz3rvj cjkz(7d:ent account of the balanceak 9j)s hd zi. 3tvzz9gjj4l(j4( 3cvqf:7cr h of payments (BOP)?

  Which of the following is an expenjs132t/ yssbw ef ye (sj0cf0-diture-switching policy to correct a persistent current awsf/ -t1c2(bess 0 ej3fyj0y sccount 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 tradqnoe8lq/v :-(cy0ook.5bo qs 1 3 ypaxe deficit and the sum of the price elasticities of demand for exports and imp:opq8(key1 0xs/ ovoq.yo 35ac-qnlb orts 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 consistent with a trade de;b 3oxfz1p p9qficit:

  Which of the following represents an invisible export in the balance of payment,l p5e89v hzfis 8,p9 fvz5ihel(BOP) of the US?

  Select from the table below the approprialy e2mbv5 1t1: w6nkaia*vpz8te transmission mechanism of a contractionary monetary policy which involves raising interest rates to achieve an external balapla26vnzeib1 18:m kvw5y t*ance.

	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 gde;y/- +njgb aid in achieving which of the following policy objeg ygd -/+n;bjectives?

  Which of the following is the mosv/o:4:e,ygf :thoyv dt likely response for a country with a fixed exchange rate experiencing:ey gvo:o/, :ydftv h4 a sharp fall in net exports?

  A country has a fixed exchange rate with the UK iar ( c:2yrkf-pound where one unit of its currency iir-ca:f ykr( 2s 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 reason to adopt a floating exchange rat br8zdd;8f./btot ju 25kahd1e?

  Which of the following policies is consistent with x:in op5kj;z)fl)vz5 7vwwz/ its objective?

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