Define the term overvalued cq75gkhxo(l ep).:aj zurrency.

  

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 pers24q c6)8pfsu iqaij j8istent current account surplus will have the following consequqas pfj4)i j62iu 8qc8ences except

  What will be the impact of a curre2n.e 2,xj ppupnt account deficit on the country’s currency under a floating exchange rate syspn pe.p 2xj2,utem?

  

	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 ijtc - wml djzx1ndocy:76 x39ve:k q9)mprove 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 withs6b5)b dfe:u 31u7lxfgmi3he the likely effect of an increase in interest rates in Malaysif5luu3ghesb d 1f73x e)bm:i6a?

  Which one of the following is not included in the current account of the bal*all( 96vjp euance of pale apj(6u9*l vyments (BOP)?

  Which of the following is an expenditure-switching policydv/ s or*pe17 es7jj*z-h c6rd to correct a persistens rv/7j*e6ope*-drzsjh d1c7 t current 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 anj 0jxnvv62xwf. b8et9s3uu i(d 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 u x 9iuj20.(vefws68bx3j tvncountry's trade balance?

  Select which of the followinxd,bh;cc xzj8 r/pdn 0lj -/+rrq-ry*g would not be consistent with a trade deficit:

  Which of the following represents an invisible exportxmix2-x9edrh6b0 im 5 in the balance of payments (BOP) of the hd9r-2 i 06bmie5mxxxUS?

  Select from the table below the appropriate transmission mechanism of a conty fet(v .of4c4f.0wg cractionary monetary policy which involves raising interest r4few. ovc4gy .ffc(t0ates 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 t:y 9debz.7,zl,p atdghe following policy objectivglad9ebty: z7.pdz,, es?

  Which of the following is the most likely response for a country with a fixe: wrlr ia09dx/ *n+ksk*1wus;wuy k))w7a e efd exchange rate exa 9+ u n7wera01s)s:);we*k*/lxku wfikdw yrperiencing a sharp fall in net exports?

  A country has a fixed exchange rate with the UK pound ;pdt2mv 7470w (5edn4wx8 eh rlatr puwhere one unit of its currency iwlp(v;82wd7 maxu r0n e 4e t4phrt75ds worth £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 floati:yrqu5m-zju rx0 / /drg8ava de 7.x3gng exchange rate?

  Which of the following poh8:avk6tmn+ar:7d s e licies 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