Define the term overvalued currency (l;utz 2rvz0:sz6wnz .

  

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 currepxad-3c) /juv )q ott3nt account surplus will have the following consequen)-vq)x3/ ctpauj3to dces except

  What will be the impact of a currennrzw9lj-hi( +/ jg.ewt account deficit on the country’s currency under a floating exchange ratejl(+ngj.9h z rwie /w- 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 (/g2ca,h gz9i z3wkp6n 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 consrl**k keei 274,x7qy r v;odmdistent with the likely effect of an increase in interes7k*q;m,7 4dl2vxiod* eykre rt rates in Malaysia?

  Which one of the following is not included ine wsq9 2csm1-ks( j0a3y5amh9iaih-u the current account of the balance of paymec s (912i3yme aasa-0j mh9qhsu5k wi-nts (BOP)?

  Which of the following is an expenditure-switching policy to correct a po9nw gj:ff e: nh,zhqo,/ hn)4ersistent current account defic: gnzjo 4hof/nh,:)9fn hqew ,it?

I. Imposition of tariffs
II. Revaluation of currency
III. Increasing interest rates
IV. Granting subsidies to export-oriented industries

  Assume a country has a tra +v ae7 wgf5qdd94aoz3de deficit and the sum of the price elasticities of demand for exports and imports is less than 1. What will be the impact of 5qa+ o94agewfzd7 d v3currency depreciation on the country's trade balance?

  Select which of the following would not be r1*vwc.vsf2*p0; tzir. rqrl consistent with a trade deficit:

  Which of the following represents an invisible rlil(2(j nrt. iq)c e:export in the balance of payments (BOP) of t.qci2 i rjr(le:)lt (nhe US?

  Select from the table below the appropriate trans hf0bwx rie qhy)/:l:y::)wyi mission mechanism of a contractionary moneta)hyf0w brl w ey:y:i:h/:ix)qry policy which involves 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 most likely aid in achieving wn(khd g94p qv4hich of the following policy objectives4(d hg94kqnpv?

  Which of the following is the most likely response3ocjhqei6dyt0x u ()z0yi :: k for a country with a fixed exc3ojyxut:y(zh6 cq ikdi :)0e0hange rate experiencing a sharp fall in net exports?

  A country has a fixed exchange rate with the UK pou7;xoas a +lx*kkp my.c /e8n2kp6+o lvnd where one unit of its currency is wo k8l 2 v xxla+a p/+ook*e7ckys6.;pmnrth £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 7+aqxb/p:pj1l u exu/a reason to adopt a floating exchange rate?

  Which of the following policies is consist jd;cx625wudi rd1kfxqq 324 oent 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