Define the term overvalued cur pxhu5p r)d;y8ki* ,derency.

  

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 accou e1u2 g48,qzw7 dmentjnt surplus will have the following consequences excjdne 1wt8q z2u 4,ge7mept

  What will be the impact of a current account deficit on the zb:n91-dtc 3p*vzh m qcountry’s currency undeb z h:m1pzq9 t3dn*-vcr a floating exchange 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 imp rqv3e6ap4j3 grove 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 statements is not co)e snq,loe6 85h6ela uit46 gdnsistent with the likely effect of an increase in interest rates in Malaysh6dni66sg etl a5 ee8lo u,)4qia?

  Which one of the following is not included in vw,eyw 2p6.gcthe current account of the balance6 g2ycp.,e vww of payments (BOP)?

  Which of the following is an expenditure-switching policy to correct a perae+0l)j3 crj4 k .fcuvsistent current acco+f4v3.l uj rcj)ae c0kunt 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 q+/ou q+hq*dy o4kk**hu1alu and the sum of the price elasticities of demand for exports and impo+lu*k*u *hakooq/1qy+q4udh rts is less than 1. What will be the impact of currency depreciation on the country's trade balance?

  Select which of the followingt+pqirc5vn8hr)77 ab would not be consistent with a trade deficit:

  Which of the following represents an invisible 6qf:x4v bg mb2export in the balance of payments (BOP) of gb xbv6m24fq :the US?

  Select from the table below the appropriate transmission mechanism of a contra wh6hna 9i9km2ctionary monetary policnm 9ih9w6ka2hy 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 .-yf k6vl i/sjwhich of the following policy objectivesvl yk.s -6ij/f?

  Which of the following is+ 8 3wn.gavts2od0 fbqqfc0 /s the most likely response for a country with a fixed exchange rate experiencing a8+bq af0gv2qo0.stfnw s3c /d sharp fall in net exports?

  A country has a fixed exchange rate with the UK pound whera fk1lkbal,w6ffn )b g6gj/.: e one unit of its currency is worfanfla:6f1 gb6lwgk/jk , .) bth £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 exchac 0 mprr0c7w;nnge rate?

  Which of the following policies ishq(x.c 6iv.. jmyqn63g z;o0 egdsyp) 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