Define the term overvalued curren+ b) zo6ied( 8+bkj a(+ax4hyggno b1kcy.

  

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 surp5h b;iwc-vd9 t 62kp7t/aewe llus will have the following consequences 59biacv6 el- d ptk; 2ww7eht/except

  What will be the impact of a current account deficit on the country’s cuq,:6ury7p-c,c6wwhm z) pa6ef 9rlk b rrency under a floating exchange rate syeqpr)6,km pzcchlw966fywa -r,: 7b ustem?

  

	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 t+-/o k.olpo jthe 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 .l2*hidrd ; hjwith the likely effect of an increase in intedj d;r2i.lh* hrest rates in Malaysia?

  Which one of the following 8cohz b1bv*h, is not included in the current account of the balance of paymenz 81o bc*bhv,hts (BOP)?

  Which of the following/ i*si4n u,6:l up0 (l ycmltc4vt .lhxw0ir1r is an expenditure-switching policy to correct a persistent current account deficit l*144r:iliw,ims 0chtx.lvn6 ty /( r0 pluuc?

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 elast8nf2ip7yb k 2p :e wxhohe.n)9icities of demand for exports and imports is less than 1. What will be the impact of currency depreciation on the country's trade balanx:ew.p8b p i9h2ek)ho72 fynnce?

  Select which of the followin t+u,l40a7+k idrswlyvt h8: ngo3jf83)rqh mg would not be consistent with a trade deficit:

  Which of the following represents an invisible export in the balance of payment;7uzhsw))idp ;gwv 3ld ic ,0es (BOP) of the US?;idhi3l v0swue; ))c w,gz7dp

  Select from the table below the appropriate transmission mechanism of 86(b. s8nmer+ z*a.:u zrtlszqqov +ma contractionary monetary policy which vossr 6(q n.z+. b 8z+mm:q*lurzte a8involves raising interest rates 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 mo1o0l+56l- bzffogj6gcset b0st likely aid in achieving which of the following policy objecti0glto06 zl+ 6f-fc5sg1 j beboves?

  Which of the following isvbo:a88 um s6*; hnkns the most likely response for a country with a fixed exchange rate exp on :ns86u8*vkasb;mh eriencing a sharp fall in net exports?

  A country has a fixed eptgqhm1x2 m ;4ny1j :/ip8 drqxchange rate with the UK pound where one unit of its currq;x ryhpni814qdm tg2/1p m: jency 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 tobn6i +0s q*jsj+ 6iw6ciwjoq9 adopt a floating exchange rate?

  Which of the following policies is consistent with its objectiv6vs a7(13ww t:a gkwpme?

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