Define the term overvalued currency.)w wpx,x; k5im:1uvsp

  

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 persisteekya1k)bed2 e bsf(o7e eb+ 18nt current account surplus will have the following consequence e 8ks1b keeo b1ey7+2bfda)(es except

  What will be the impact of a cbz o(f es lst5j11w1e.urrent account deficit on the country’s currency under a floating exchange rate syst1 sl 1sef(bzjte.wo 51em?

  

	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 curr w)4n*rb mek 2bp.qq6qency will help improve 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 consistent wito*s4/9xdk55ls 4kai z/g3 k ae+cpusih the likely effect of an increase in interest rates in Malaysia?c44s/i ia+xzeko p *5kgad5l 9/3kuss

  Which one of the following is not incluug9 ; c;0 .nuz 8lyvclv.kckrm 0nah1,ded in the current account of the balance ohvn.,0 9czyulckc;ka 0g;.r lvm 81u nf payments (BOP)?

  Which of the following is an expenditure-switcoaov9 )7m,wqy)ob2 v thing policy to correct a persistent current 72bmoo) yq,vwto v)9 aaccount deficit?

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

  Assume a country hasmv3f hxa*:e 4e,tgue 4 y1d1na a trade deficit and the sum of the price elasticities of demand for exports and imports is less than 1. What will be the impact of currency depreciation on the countr 4g y1* t:af3xa duee1e4hn,vmy's trade balance?

  Select which of the fol 5 jt*cvl*)l(h8cqb wk 2mg0mplowing would not be consistent with a trade deficit:

  Which of the following represents an invisible export in kwo*mu2i*u x ;the balance of payments (BO wxk;uu*2i m*oP) of the US?

  Select from the table below the appropriate transmission mechanism 45 4 t4dyvi qz+,z cp;czfir r,v;9daiof a contractionary monetary policy which involves raising int+tc v r9 vfq a45i,diz4;;zrp dycz4i,erest 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 which of the following po(vp6zn rt21y 8hv2xat 9n s:oglicy objeyat6g8op t:h 2sv9vzrn1n 2( xctives?

  Which of the following is the most likel0dj b- 3qtfn(az,sbp 1y response for a country with a fixed exchange rate experiencing a sharp fall in net exporta b(q sjd f-znp0bt3,1s?

  A country has a fixed exchange rate with the UK pound where one unit otf2apmrr (y, ;f its currency is worth £0,mr; y pr(af2t.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 exchang/,1 4hq0/aac6m soyevjck + rme rate?

  Which of the following policies is consistent with ik2z r41.b*p r j5u-ipw)mcqiv-w7lrits objective?

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