Define the term overvalued 2, m,viox/chk 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 account surplus will ham ld)h .yeb1m4ve the following consequences 1dl.mhye4bm ) except

  What will be the impact oyres+ + nz19 bwov+ 3egntzsb/(w)my- f a current account deficit on the country’s currency under a float/(w93 bsemnvr1gyzeny+ - b++ )s tzowing 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 improve the bal ,u1i n eqicj4av6nt34ance 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 6);in/- erqxyt )kz74khkojs likely effect of an in)zshr7 )joxnqtk/i ; 6-kky 4ecrease in interest rates in Malaysia?

  Which one of the following is not included in the current aas* 4,p( nfbi0;)r3,vb7y*(x aubyojprnmq o ccount of the balancer* (7 ap,u0bxo vnrbyfb qny(s; amip4jo 3*), of payments (BOP)?

  Which of the following is an expenditure-switching policy to correct a persi*kf(sdl2vca2 .* xlt kstent current acco.tf2cxvl* sda lk*k2(unt 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 traw86-v 0 m)fdoxdu6fmide deficit and the sum of the price elasticities of demand for exports and imports is less than 1. What will be the impact w f80mio)m-uf6 6ddvxof currency depreciation on the country's trade balance?

  Select which of the following would not be consistent with , vfnj s,69wvja trade deficit:

  Which of the following represents an invisible export in the balance of paypay0-rt :a unx6laliw6z .tpx.r:7a :ments (BOP) ol: uyai6r xp6. r7.ptna:xaawzl:- t0f the US?

  Select from the table below the appropriate t w9blo;to 10v;sx2bem ransmission mechanism of a contractionary monetary policy which involves raising interest 0ol em;bx9 o;t21w vbsrates 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 the following poo+h6 lo(0bhq w.xiyo/ xj5k7 flicy obj6x fhwh o5 (jbq/ k7xli+ooy0.ectives?

  Which of the following is the most likely response ow1tgkku.2eln -et- *for a country with a fixed exchange rate experiencing a sharp fall in2l tt-u kwn.1eeko*-g net exports?

  A country has a fixed exchange rate with the UK pound where one unitg4yzdqq 6ha r64/q4s/ qs /lym of its currency is worls d4q6ys/4a /4/mhy gq 6rqqzth £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 followin 3 m;bvsk*pnpt,du: 5c8p. pdrg is not a reason to adopt a floating exchange rate?

  Which of the following policies is consistent with i/ 5moh 9 u (znt(l+ekllcstqs,8n1j8 pts objective?

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