Define the term overvalued curren8wsvuc, g;1lk cy.

  

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 curref4h4 7u 7:-0r0eyi ab rg 7twv-f(bz3tqibeannt account surplus will have the following consequence3(b4tu4 fz:rh -ga 7et b nrwa7eyb070-v ifqis except

  What will be the impact of a current account deficit on the pmydu -w uv:82country’s currency under a floating exchange rate w-m uy2p vd8u: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) i0khr;wq)q d,mf:

	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 the likely * (6untuytsn c x54e6leffect of an increase in interest rates in Mx (nu5n u*4 yles66ttcalaysia?

  Which one of the following is not includel.-tiyeuzbc49fu c -ro0fj) 4yu4-dj d in the current account of the balance 4u-rezj 4l9i.-yo-u )c y utc d0fbj4fof payments (BOP)?

  Which of the following is an expenditure-swij)k / on1 n48dwyj)2nee2 bmzftching policy to correct a persistent cune4bdnm ny1 )ekw)j2j ozf8/2rrent account 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 sum of the price eln0kua8c(5fg 17ikjq6m jj wf1asticities of demand for exports and imports is less than 1. What will be the impact of currency depreciation on the country'sw6in101(ak5c fgum8jfjj k7q trade balance?

  Select which of the following v wo924 e3bp xq3wxv4mwould not be consistent with a trade deficit:

  Which of the following represents an invisible export in the balan-(t l1kkz;ejv *yc(lh ce of payments (BOP) of thejc(y kv; ek*l-zh1lt ( US?

  Select from the table below the appropriate transmission mechanism ofjuebdzs q/:; 5 p7l.fh a contractionary monetary policy which involves raising interest rates to ed uhsz;.7/lj q:pf5bachieve 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 thep.*n3t6k f hju7ufv.bx y,7mk following policy objectpuhy7x nmf 3.fkt6,kv*u j.b 7ives?

  Which of the following is the most likely response for a country with a f)e ek3gok/e ti/ vl-/vixed exekv/li voe/gte/)3 k- change rate experiencing a sharp fall in net exports?

  A country has a fixed exchange rate with the UK pound where one unit of its -q.hljlhmt3q -w++ du jd(, nicurrency is worth £0.w+u -d-h dqn(mt.jlh jl,+3qi 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(i.d,yjvr:7s ufa 5sw qz4gk8 to adopt a floating exchange rate?

  Which of the following policies*mrw7gzqcgh 9 ,:7yr z is consistent 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