Define the term overvalued c u/hjpdx2. d4 w,y9 a)orifp4eurrency.

  

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 following ccwsw eu:08tf -g6jxcb-dq7 5 consequ-s 7u gqej5d0- x6fbtcwwc8:cences except

  What will be the impact of a current account deficit on the counthf3lizh8.s;uh- 6tak+tx+3+ro b lqjry’s currency under a floating exchanklzhtu +s-fo3qrxi hj;lt3 .6 h+ ab8+ge 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 (BOT) ib -1j5czcz( zbf:

	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 likely effect of- /sb+pg2y ao0ljsfeu.+ o wj0 an increase in interest ratew2b.j/l oojy-g f+upe0 0s+sas in Malaysia?

  Which one of the folo r/poje d0a(1lowing is not included in the current account of the balance of payments (Ba(r o/pde o1j0OP)?

  Which of the following is an expvp 1 p/4l/3m a.whjghsenditure-switching policy to correct a persistent current account deficit/3v/pap l1m sh.h g4jw?

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 ld0 tn7aga x;t k,4kc9elasticities of demand for exports and imports is less than 1. What will be the impact of currency depreciation on the gk 9l7ad4 0axk,nt tc;country's trade balance?

  Select which of the following would n/ z:jp9nd65oz5o3ekhld/ b 2lo 3/ohd:j tc hgot be consistent with a trade deficit:

  Which of the following repres yew38fu, +y8co7pishents an invisible export in the balance of payments (BOP) ocusohe+ i y878, fpwy3f the US?

  Select from the table dv pfl/t2cp21below the appropriate transmission mechanism of a contractionary monetary policy which involves raising interest rates to achieve an external balance. 2v21/lpf d tpc

	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 follow;uda k (oiid:i,qw h *x*8i*oxing policy objectiveoh oxi :8,k **d;w*aiidqxiu(s?

  Which of the following is the most likely response for a country wit5wt4o:pjw5;8 qvh y toh a fixed exchange r:54hjwvp5q ;8 ot ytowate experiencing a sharp fall in net exports?

  A country has a fixed exchange rate with the UK pound where one unit of1a0q2c+qt hr 4cw f /m)-zrxjp its currency 4jfc 0h arct1qz -/+2pwqr mx)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 az/fj)6qeob vg;clt5 6,/,wg u ;erplu floating exchange rate?

  Which of the following policies is consistent with its objeqt,rno;optb kpk98;9wt+:vcipy k -( ctive?

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