Define the term overvalued cur7c/4r9rv;w.csjhqe,scw- um zn ud- /rency.

  

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 w*m*kmnkdp 0;3w32k38w - z umlprn ysuill have the following consequences exckmn; -l80u*3w p 3*npum32d rsmkkzyw ept

  What will be the impact of a current account dejw soykduzw* y.x:;/3ficit on the country’s currency under a floating exchange uxzwyswy*d3:kj / ;o.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) f1 wvgy1w98tr 1w:hkha o 8z:qif:

	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 wq/g9o xcoannus ka70j.4x (4tsoe ;0 jith the likely effect of an increase in interesjc9;ka enqs7agx0nx4 (t0so4o .oj/ ut rates in Malaysia?

  Which one of the following is not included in the current account of the xj:g q,qgg)gcrko.;; balance of payments (BOP)?ogkc ggjr.; g:q);, xq

  Which of the following is an expenditure-switching policy t.jaus6ix 0jfw) mcz8ev7q +z;o correct a persistent current ea+w;i0 jfcvm s u.z8qx)j6z7account 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 traden61+4 vqoi/omx*zt wq deficit and the sum of the price elasticities of demand for exports and import4 6/+otwix qzqmv1*o ns 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 a trade defsz m6.k):3n g)e1cjdef4erz gicit:

  Which of the following represents an invn98bqmp a7zo(p 4fr o+isible export in the balance of payments (BOP) of the US?ozrpoq 4(famp7n9b 8+

  Select from the table below the appropriate transmission meqk*9 qg*enfl0ecia 1. chanism of a contractionary monetary policy which involves raising interelea.09qe*kcfn q*ig1 st 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 most li. i02 n*/ hiyhzdtkk rp+r ;acik:+9s*8hc zbfkely aid in achieving which of the following policy objdfzhc0 k8 +;y/*pr 29iza+ckh *th :snkibr i.ectives?

  Which of the following is the most lifs/3r l-ztm m19+rks2l3d3ix ooc uwk:6chp(kely response for a country with a fixed exchange rate experiencing a sharp fall in net exporo6+ x sr 3 -flsrh3l:k2m/d 9ckciuz1mw(ot3pts?

  A country has a fixed exchange rate with the UK pound where one unit of its cur7bxw-i:-zeayr h he *qb+c ii65lfe.8rency is wae7*h+5qyiez cf-i .6helw-bbrxi8:orth £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 rz9s)5c4onl qgate?

  Which of the following policies is consk03+5q,mes m*wh ;uj93zkfbv t ity-zistent 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