Define the term overvaluep86s6zxpvqvb mtm20y-mo r;: d 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 persistent current account surplus will have the following convp0 3sgkxbh7 3se3p 7skh3xb0v gquences except

  What will be the impact of a current account defit4 7z:b (+vyqe 8-d u3gzbituqcit on the country’s currency unde-bg +v:bt8tzuu yiq ez 7dq3(4r a floating 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 curren(nby9+ uwlc ikp35 6t2lb uq+scy 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 with thx05*;zk, hpfxq0ri kxe likely effect of an increase in interest rates in Malayshkxkx*rq;i5px 0z,0 fia?

  Which one of the following is not included in the cqf+0wo6v na g++sig bqu )zx+g j4,;rjurrent account of the balance of pay+qgbqxj; +6 s+gzgwa4,ijo v0)+unrf ments (BOP)?

  Which of the following is an exe:wx6; t uiyjnpmbda7:x /a /)lk+lq 5penditure-switching policy to correct a persistent current accoun ax;/undpt:7ixq 65wa+m:ekl/ljb)yt 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 def7:u w3xupygqo-2r v i9icit and the sum of the price elasticities of demand for exports and imports is less than 1. What will be the impact of currency dep:37ygrxwo-9 ipq2vuu reciation on the country's trade balance?

  Select which of the following 48:x e4w)5an n kibzq bz-7zbowould not be consistent with a trade deficit:

  Which of the following represents an invisible export i,w bt. 5l5l3lyb b3llcn the balance of payments (BOP) of yb5,5l 3w.l btl3lcl bthe US?

  Select from the table below the appropriate tdw ozrghfhv7 ms *.,o8slk4-) ransmission mechanism of a contractionary monetary policy which involves raisin)gd sml-rk, ohh.f zo *v87ws4g 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 ljxire0)h oi /ii6j-ydz /:uy ,ikely aid in achieving which of the following policy objectives?zi id0i:,-o x6ie) / jujy/yrh

  Which of the following is the most likely response for a c*dtk/ h s9)ae0kque 6qountry with a fixed exchange rate experiencing a sharp fall in n e/kk6qu* esa0d9q)h tet exports?

  A country has a fixed exchangeght,(qvigz76i 2zj4c y( u)x7x(zpeu rate with the UK pound where one unit of its currencg2zxxy)i 7g6p4z 7t( jiuh (cq, uv(ezy is worth £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 reason3b0aqhb -r.zp to adopt a floating exchange rate?

  Which of the following policies is consistent with its tq *i )z 7qxp(g1twle+objective?

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