Define the term overvalu+ l0xu w3mtc.ned 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 perso z plo)ax0,*wistent current account surplus will have the following consequencxlo w,*opz0)aes except

  What will be the impact of a current account defict3b.h :owiljevp;*q -it on the country’s currency under a felvij* ;b:3oh.q t- wploating 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 impanlry2* hxc5f b4m xt*sg(8f1rove 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 consiste3g8zo s h9 qn*h (uujj;sm;db+nt with the likely effect of an increase in interest r qunub*hjm3+8;z; hos (dj 9sgates in Malaysia?

  Which one of the following is not 44:p bspb*.tsn os,:o) 1h rksoge.hgincluded in the current account of the balance of psbks.1opgsgt)n:h b.4,r:p4oe * oshayments (BOP)?

  Which of the following l b/ 1u 2p)8rrrhsyew5is an expenditure-switching policy to correct a persistent currre) w 2u185bsyrp /hlrent 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 and the sum of the price elasticit2jxg oy+e5n,dg ,7- rquuy 3klies of demand for exports a+uqeu 3,2 d7y,jlxkgyrg-5n ond imports is less than 1. What will be the impact of currency depreciation on the country's trade balance?

  Select which of the following would not be consistent with ansp y-5zpiuul98 f,h 4 trade deficit:

  Which of the following represents an invisible exphxm wpwt3)o24 ort in the balance of payments (BOP) of the US? mw)p32o w4xth

  Select from the tablfo:;4zv,c)d acf8n due below the appropriate transmission mechanism of a contractionary monetary policy which involves raising interest rates to achieve an external ,u:fzc dv;c n8ofa)d 4balance.

	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 folnbebypw lq1z:k ttip*88* 1 :dlowing policy objectby*tn1p: tqkild81 w:p *eb 8zives?

  Which of the following is the most likely response for a country with a fixedm*k8yth 7y h*/ov,(2bwxp,qdlmm) iv exchange rate experieny/,bxhok 2 ipd(*q8mv7y,t hm *wvml)cing a sharp fall in net exports?

  A country has a fixed exchange rate with the UK pound whfw*ut, juemvd8y*8u/5t ml /rere one unit of its currency is worth £0 /tm*8ulmfueruv*wt/jdy8 ,5.80
£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 *la7ml;d 6y*of as q4cexchange rate?

  Which of the following policies is consikbbfm:.dkh4r 8q q*: xstent 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