Define the term overvalued cud azy*k6,kv 8nrrency.

  

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 acf ksvq y .-u7apu0 (z;-7cgqkpcount surplus will have the following consequences 0k 7g yqvp-faupc 7(qsz;uk .-except

  What will be the impact of a curreu po9- 8i)(vn*l dy6lxy wq2wpnt account deficit on the country’s currency under a f lldvn8)qy-( w6xyiu*pp 9 o2wloating 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 balancez3ypy:0z s yshj)ti+2 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 sta n*kki(z d/ v.kxzre0sq tpu84 j-3:bqtements is not consistent with the likely effect of an increase in interest rates : .pji 4n(30/u8 z dbv kkezx-qqr*tskin Malaysia?

  Which one of the following is not included in the current qgl0n ql2d ;r*dm3+ naaccount of the balance of paymlgln 3 ;qdnq*ma+ 02rdents (BOP)?

  Which of the following is an expenditure-switching policy toij ad .+psaru0d3a8 u2f7 naz/ correct a persistent current accod0j3ap./au 27az+s ur a8ndfi unt 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 tr;k 1mb om5v e7-w;xfqgade deficit and the sum of the price elasticities of demand for expor;1mw;-k 57e bm qxgfovts and imports is less than 1. What will be the impact of currency depreciation on the country's trade balance?

  Select which of the fof2 6x*ul6hqx/7 svqxb llowing would not be consistent with a trade deficit:

  Which of the following represents an invisible export in the balance of *u dfan6 -svbl,oo 0(mpayments 6smvfadn,b -(o*lo 0u(BOP) of the US?

  Select from the table below the appr,mrb*i)-c;u g) wx.ppz5wv u83o mczsopriate transmission mechanism of a contractionary monetary policy which involves raising interwc)ip8c5or uwpz. mzvsgm*)-bu 3, ;xest 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 likely aid in act8plevwp2-e-l ur3xu +js/ v)hieving which of the following policy objec v/pt-usw2- +prjxel3u lv)e8tives?

  Which of the following is the most likely response for a-kx zag/90ink country with a fixed exckz09an/g-x ik hange rate experiencing a sharp fall in net exports?

  A country has a fixed exchange rate with the UK pound where one unit of its c5- jnlhfh 7mo3urrency is worth £03onj 7-f 5lhhm.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 exchang4dtco2h6hs t -;ezrg2e rate?

  Which of the following policies is consistent with its oby 6p(z joift)ct8-tuy7g2 3 ew2f/vx gjective?

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