Define the term overvalued cur5+jk+s6(xko fqy al q-pc19lerency.

  

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 wa4z)-ze (mb4 qq8iffjl k c/b8ill have the following consequences exc4i 848a/cf(zq lqbemf)j-bkz ept

  What will be the impact of a curren/z tqhkne cq:5pv0m.ewkg5 45 t account deficit on the country’s currency under a floating exchange raz5 5k.45g:et qqn kh/wpc0evm te 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 trjfuo *b z09 iu8dnmi00ade (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 th+x5f pl p8c.a1we+s fv(z us4c*b*fzoe likely effect of an increase in interest rates in *scv*4pu+ffx5s(zpcb zw. 8 l+f ae1o Malaysia?

  Which one of the following is not included in the current account of the bacasn s+*bg 1dtj(:-qulance of payments (BO*c gtdbq1sjas -nu(+:P)?

  Which of the following is an expenditure-switching policy to correct a peo cbj.mdi r;vrh;nk bfp:81buuk7 2-3rsistent current accounjn-m.vcr872b:1k bku fbur o 3;hid;pt 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 deficit and the sup ctaez tx65t )xw73-bm of the price elasticities of demand for exports and imports is less than 1. What will be the impact of currency depreciation o3e6)7ab txtcxpz5t w- n the country's trade balance?

  Select which of the following would not be consistentm ,ms* d8cpgw9 with a trade deficit:

  Which of the following represents an invisible export in the balance of payment dd9 ajauv(xp+i0u n4gw(qv;1s+9 v j4udvu(;w 0daqgpxa(n i1 (BOP) of the US?

  Select from the table below the appropriate transmission mechanism of a conaf+cu 2 ,8m.no qzqu(dtractionary monetary policy which involves raising interesf8qq2cm .u ,a z(no+dut 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 th0fqtdsokw (v*t0- kk 5e following policy objt*(tvfw q-0k k 5dosk0ectives?

  Which of the following is the most likely response for a count/c)x lb64 a xfcsiv :lff/*;dkry with a fixed exchange rate experiencing a sharp fall in net exporf:;*b f6l4kx)l/dvc/ xisfa cts?

  A country has a fixed excshvp6zhan h83gs*r5 51onq+dhange rate with the UK pound where one unit of its currency is worth £0.83oqg5hhdr*s +6v 1s5 8nh zanp0
£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 l*uoe i fn kej,*u7+.pj4y9of to adopt a floating exchange rate?

  Which of the following policies is consistent w:v3(lzb.ohdq) 6wjrrl )1avrith its objective?

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