Define the term overva7iufjk0rb f m79fn 6lohj6;y4lued 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 persisj)h , ,)emuwiftent current account surplus will have the following consequences excepthuj),i, e)mf w

  What will be the impact of a current account deficlv0cnj*w 2 ):h r-oixnit on the country’s currency under a floo0*-x cj rvwnin )l2h:ating 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 balance of trade (5/5;n kg2ejmq tw)t jkBOT) 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 consisteniu.zn:kl* s f1t with the likely effect of an increase in interest rates f:*sl .inz1kuin Malaysia?

  Which one of the following is not included in the currenr,jlx7p(/ 8zp3zxqud j; n2not account of the balance u7nj p(3;jz/d82zp xnxqrl,oof payments (BOP)?

  Which of the following is an expenditure-s/pox ;7f w9 nx/n( pvjbur2g5pwitching policy to correct a persistent current account deficinjgx x72p pnor/(u9 pb5;vf/ wt?

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,2fg m,yuqgd4 s /1clq/l rc/ej +op6b 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's trade balancelg jdq bmq+y/cp eg,r o6/l /2c,41suf?

  Select which of the following would not be consistent with a trade deficitlj,ffht*/gsz8ly,z 6 l ,:r lz:

  Which of the following representwr df+.2yl3m n kl+7lmya;o t.s an invisible export in the balance of payments (BOP) of the fmnl.w7lr t+y+my;d23oa. k l US?

  Select from the table below the appropriate transmissi)6m5n7gir+svt 9 vlm cc1igw1 on mechanism of a contractionary monetary policy which involves raising interest rates to av1c1lv)cmtirwmg+6 i 5 g9ns 7chieve 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 moaxp*nm j/pr+fa yl.4*p4gyy .st likely aid in achieving which of the following policy objectix jry4mgy/ 4lap pay*.npf+.*ves?

  Which of the following is the most likelp9ldz6p ovne0en5 z 4ut698iby response for a country with a fixed exchange rate experiencing a sharp fall in net exze i6 l9pn9v6bd 0zo854up netports?

  A country has a fixed exchange rate with the UK pound where bnj61mtui8c+ r o-w7a one unit of its currency is wo1wtjmb-8orni cau 7 6+rth £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?j5 l.fkmtgj (bq-8-q6 1gkdxk

  Which of the following policies i89rvdfu f,n;j s 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