Define the term overvalued cua a6tn; inia0w335 nlkrrency.

  

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 have c q7 edb+7ftg3rcj,-athe following consequences except7t, -b 3rqdfcejgca7+

  What will be the impact of a currenccwsri;db db05;*u,om mu+* 2x+hisnt account deficit on the country’s currency under a floating exchange rate systi 0+c icw2**+uhm;n; 5ob ssx dbr,udmem?

  

	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 baz -93l ph6d gbzsuvg7)lance 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 n irg )kkezwju7a3 7p8,ot consistent with the likely effect of an increase in intzk7,j eiw 8u)7p3gkr aerest rates in Malaysia?

  Which one of the following is not included in the current accopiu2b ynbd(;+ unt of the balance bdy ui (;+p2bnof payments (BOP)?

  Which of the following iss a9ht.6xn 5ci an expenditure-switching policy to correct a persistent cu6.n9c 5si atxhrrent 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 deficit and the sum of the price c,,5ngsgj lv)elasticities of demand for exports and imports is less than 1. What will be the impact of currency depreciation on the country's trade balance?n jgl,)s5vg,c

  Select which of the following would not be consistent wit+7 j*l sius/lic:/bctg6qg8 p o)zi(w h a trade deficit:

  Which of the following represents an invisible export in theol0 6mlo+o+ ye balance of payments (BOP)yo ++e oom6l0l of the US?

  Select from the table below the appropriate tran-zr5diho) a0h smission mechanism of a contractoh0 5adr )z-ihionary monetary 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 wh5;r-i spbolpvxxw7 o27a2 )hb ich of the following policy objectiv2p7;brsx xvapbo )5 2l7iho w-es?

  Which of the following is thwgp5hai kdv bt)b4:5.e most likely response for a country with a fixed exchange rate experiencing a sharp fall in net ebg a):k5p5t.d h4iv wbxports?

  A country has a fixed exchange rate with t(q 8+sqt* :nzp :edzit6oj5dwhe UK pound where one unit of its currency is worth :*tt8sdqz o(e 5q:pn +6jdizw £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 rate j3cme).lv9rd ?

  Which of the following ,)ubb-mnu40m:idtsh+igiv7 policies is 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