Define the term overvalued c .sclpncc i;14urrency.

  

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 in;*epftf1z oa3 bo5+surplus will have the following consequences e ztna fp53o*;1fi+obexcept

  What will be the impact of a current account 7 vze4s5a5ebc/b8h ,xeqrqy 3 deficit on the country’s currency under a fl8xcb54re/yb35hq a, zs7evqe oating 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 h8c1c gx u,x 6nkc(spwt )11veqelp improve 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 w./kfsk gvxw( 1nfqk- i-kw9; consistent with the likely effect of an increas kk-k1-/sw.f;qwi gwvkxf9n( e in interest rates in Malaysia?

  Which one of the following is not included in the current account )1zhv.9 dce9ib uq8qhof the balance of paymentbih8.hezcvq99d1uq )s (BOP)?

  Which of the following is an expenditure-switching w0,s jmd njt6 (7+nikhpolicy to correct a persistent 6ij7 k+n (nwmh0,tjsdcurrent account 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 defdhj6j v0f)o 5ficit 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 the country's traf jo650 jhvdf)de balance?

  Select which of the following would not be consistent with a d2(k3ahw4 baupo0 ao(3j v ka4trade deficit:

  Which of the followinm)*s7onb+ xbjg represents an invisible export in the balance of payments (BOP) of the US7+) bmnojx *bs?

  Select from the table below the approprpq ef dn58,w-qiate transmission mechanism of a contractionary monetary policy which involves raising interest rates to achieve an external balance.ped5 -qnw,8fq

	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 ac+3om z6 pjhgtua-wdf* 2s8) axhieving which of the following policy objecti d2xhg6p 3msa zw-t) oufj+8*aves?

  Which of the following is the most likely response for a country with aa0p: c(ihm40zm/v xwk fixed exchange rate experiz:/ h0w maxivmp40(kcencing a sharp fall in net exports?

  A country has a fixed exchange rate with the UK pound where one uplwkc33o/ 9j opqca*; efmk :9nit of its currency is wortkja;fm3 c* 9ow l9p3ocq/:kep h £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 floatin dv1/ bee+u6lzt:co8d g exchange rate?

  Which of the following policies is consistent wix(i-xsc)o4vn) qc6 b wth its objective?

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