Define the term overvalued curr:owx tj2k49rxjrnq,7ency.

  

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 ar)f-dyhi/2 h mccount surplus will have the following consequhhdi-r / )2myfences except

  What will be the impact of a cug,,z4ba7), :fnyb zpof*t fqo rrent account deficit on the country’s currency under a floating exchange rate s*bbzf zn),pgoqoy,a 4t,f7 f:ystem?

  

	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 i9c4c- ;yx3o7pejki2 qj s(wn) uvs0hf,h(omimprove 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 consistent with the likelyrv5;b0e7nu e,e8v :(wy xg,9topkmro effect of an increase in interest rates in Mav9n:, bryog ; r7t(e,muox0p 5kew8velaysia?

  Which one of the following is not included in the current td x27l7g u(fghki: wl y6s82yaccount of the balance of payments (BOP)y kf(2ggd xwt7l6y2u 7:islh8?

  Which of the following is an expen2 vt(-lr 3d mf -ajdvlm/r4pw:diture-switching policy to correct a persistent current ac3dmdfr4 w- :2j/vllm rv -pta(count 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 elasticities o) *vn )o7p3gk n0a)o9z nwprizf deman) r)p39w0) npvzkn7in ooz*agd for exports and imports is less than 1. What will be the impact of currency depreciation on the country's trade balance?

  Select which of the followi r)bpc*;g7y0(z16j wqqe aymdg-cda -ng would not be consistent with a trade deficit:

  Which of the following represents an invisible export in the balm k fbdoj.60nblfoai is09lf;v (297nance of payments ( ( 2vis da0o.n ;ofil9b9l0fn7fk m6jbBOP) of the US?

  Select from the table below the appropria8yyc:91wl0mqfz, qbc te transmission mechanism of a contractionary monetary policy which involves raising intere,c0wq9 :zy m1fc8ql byst 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 thxp;v,vxd5:. q -w67uyd uyj l 1vqw0zve following policy objectivdvv0wyl, u6yqqdp:j 1 -;xx5.zuv v 7wes?

  Which of the following is the most likely response for a countwg vsxge8h7 :6ry with a fixed exchange rate experiencing a sharp g8:se7w gxvh6 fall in net exports?

  A country has a fixed exchang31m6qsee- qs,kj i f-we rate with the UK pound where one unit of its currency is wwkes3- qj6qf1se-mi ,orth £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 irbeeu 60ibw-, s not a reason to adopt a floating exchange rate?

  Which of the following policies tj yx4p s22;0b nr/sdtis 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