Define the term overvalued s 65 bxzimor0af);u vd)*o/hv 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 curren qd3e4lhdtjp7-+q8 f6 kq 6m5djo *havt account surplus will have the following consequences except 38-t*fekqqhdj oldaq645+vpmd7h6j

  What will be the impact of a currentpeoq7 c e6kg1ck*xxgc24 :p :q account deficit on the country’s currency under a floa 4k*x qq6gc:71 : k2gpeexpoccting 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 balance of trade (BOT) it8n6 c(dfx m0u bmh7 ,w:lc6pmf:

	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 statementssr/nrzen5pz6 w*r r5 uw0 j1,k is not consistent with the likely effect of an increasep ,w wz0kr5ur5ne6n rrjsz/*1 in interest rates in Malaysia?

  Which one of the following is not included in the current accounzbs: c; q8pfq6t of the balance of payments 8s pb; qzcq:6f(BOP)?

  Which of the following is an expendituryqxx-i qa98w n.4u9pn)+ r mdle-switching policy to correct a persistent current adupn+q8a-)9rin y9x w4lq m x.ccount 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 zuq/q 5r7:n pqzdc6)ltrade deficit and the sum of the price elasticities of demand for 7u:r5qq znqcp)/dz l 6exports and imports 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 i7 tio:,e5i4 qzb4dx qgmd8+ dg5bm(4m9m fqnwith a trade deficit:

  Which of the following represents an invisible exportg+ngcy9o:b : i in the balance of payments (BOP) of tho+cg n: :giy9be US?

  Select from the table below the appropriate transmis b)*bm+pf rn8,nerlz)sion mechanism of a contractionary monee l npr 8r*mb),+nb)zftary 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 which of the following policy js4w4vrmb9+nycc5i+qn; 0l x objnc q vyi9rx;+wsn 0b4c5+m4ljectives?

  Which of the following is the most likely h ) ug(5qzy8+)dwwt.eq9saj7w:bq s gresponse for a country with a fixed exchange rate experiencing a sharp fall in:9b sgq)5wagquz st w)q+87ej.w y( dh net exports?

  A country has a fixed exchange rate with the UK pound where one unit of its cupyg:chht vbf.x55.c 0 rrency is0tvc5.b ygh 5hp.x:f c 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 reason to adopt a floatingx198qk cpn1s(tc5z ut exchange rate?

  Which of the following policies is consistent with its;n+xe jfq av0 yhhg8v(:j zu,q8a *y(e objective?

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