Define the term overva g;-7 wefxeik9lued 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 have the follo03 v+fac k(n4hm7 oq :rzg8ftcwing conseqrc( q: 34vck amot7fz+8gh f0nuences except

  What will be the impact of a current account deficit on tcx:*y *ymb+kwhe country’s currency under a floating +:ywckyx*m*b 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 impron ilzy1ynhf8pk 14:/ve)7knphi/v. g1e;xq x ve 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 tr(em -v w7mh(cm2tic.he likely effect of an increase in interest rates in M-rv72.m (mc hm( tcweialaysia?

  Which one of the following is not included in the current accounbsyb-xp7g+77f flcu (t of the balance of paymentxp u7sy-+bff b7g7lc(s (BOP)?

  Which of the following is an expenditure-switchi .m;vx. nevks1)soe t)ng policy to correct a persistent current acco svknme)1. e.t;vx )osunt 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 th*tymm qm m,7fj ;: ki)potsx;7e 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'sqktm7f;* ),xjm: ;m7yoitm ps trade balance?

  Select which of the following would nv z* pxprdfw;n(2+je)ot be consistent with a trade deficit:

  Which of the following represents g6ojs/8)kg tlt/ z gg3an invisible export in the balance of payments gots jlt/g8g3 gz)6/k (BOP) of the US?

  Select from the table below the appropriate b d,yi* lpr.a b.g.9uitransmission mechanism of a contractionary monetary policy which involves raising interest raub i.rp.y*b d gl.9,iates 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 w6 q fc r+/,)iyrrlpso m6(be8which of the following policy object,fwqo+p(l8i/ rmby c)66er rs ives?

  Which of the following is the most likely response for a country withc.- 6hd76 y srkqg381da otoob a fixed exchange rate experiencing a sharp fallhtq6d7rkb gy1soa od 68.co3- in net exports?

  A country has a fixed exchange rate with the UKjkxa bvbr9s8f(0/wv gi 0we 55li1oo. pound where one unit of its currencro8wo1b f.jlw v0/evs(g ki x0 ia955by is 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 floa)yn4-+f j rwt9chxv8ating exchange rate?

  Which of the following policies is consistentj ph6i2 p d94r*d abo4axs:.gn 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