Define the term overvalued3xve h +le:jck j3o+9n 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 curreaj d l (d*p3(q,ec:tbbnt account surplus will have the following consequences e (,cqb*(dlat3b d:jpexcept

  What will be the impact of a cur j4z tu1)*dafks /jk+wrent account deficit on the country’s currency under a floatidujfj za+k4k w1 )/*tsng 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) if: 3zrk7y+,u p4lsp43 :jn )rjvf msdro(

	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 wid4t(am; nd mwifhfz)o.l8) ipo :f /2bth the likely effect of an increase in inter (dn2tw )oa/fd;im4.:b zop ihmlf)f 8est rates in Malaysia?

  Which one of the following is not included in the current account of the b ytojv )kejsl/)o8:8s alance of payments :)v)ye/ sj lotok js88(BOP)?

  Which of the following is an expenditure-switching policy to correct a pe w6djmuf d(iy 9h1u d-07ffz.frsistent current account deficit?fdhz9w1mu ud-.0fj i6fdf7y(

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)v4tfq2 ks,h w of the price elasticities of demand for exports and imports is less than 1. Whhtk qw2v)f4s,at will be the impact of currency depreciation on the country's trade balance?

  Select which of the following would not be consistenthh* *bxdxy+p* with a trade deficit:

  Which of the following representsnpd2qwsnn . gyv6pn : 2mp+8;r an invisible export in the balance of payments+.s22p g 6 pnynq:d pvwn8;nrm (BOP) of the US?

  Select from the table below the appropriate transmissi3ws;ygqyxa d8 4i l9b9on mechanism of a contractionary monetary policy wd9a4bw8s l3 gy;yiq9x hich 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 obj/hckrve12z kz i9sm9:ectk:k mhc/zzsi r9 e2v19ives?

  Which of the following is the most likely response for a countrf48uzhulzg5 zbo3s 26 y with a fixed excboz s4z6h8u2zgu3 f5l hange rate experiencing a sharp fall in net exports?

  A country has a fixed exchanvwq 7b mks2 h7 pj8(fj7n3p:dnge rate with the UK pound where one unit of its curren8 w(ns2 j hnm3:qdfkvj777pp bcy 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 p lcwks 5o*yj:/.n3yf):x9tzy/ c xuoreason to adopt a floating exchange rate?

  Which of the following policies is consistent with its object opvy)r79 ( +gk+hnynzive?

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