Define the term overvalued currency(g 1/zm1a co,,uahotiwd:. e8/jaq xn .

  

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 followier4z5r ,ol(-yh oh.ri frr3s 2ng cons r z3ylr oi5rh(eh.4sr,f -r2oequences except

  What will be the impact of a current account deficit on the country’s currenb:*znur+nu i/ cy under a fl n in+u:/zrub*oating 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 oo lh +,j+ +g;9fkbx(n*wrmqfaf 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 sta.9x l4iu idbc/lg)b8r cmak*3 tements is not consistent with the likely effect of an increase in interest ratbi la dbxcru 93g4.k8i/l *)cmes in Malaysia?

  Which one of the following is not included in the current account,)cdf cqvxg4b mh:;0m of the balance of payment mx ; cq4fm:vbcg,hd)0s (BOP)?

  Which of the following is an expenditws g8tx9/ip8c6uvwr*ure-switching policy to correct a persistent current accou/ sc*w6gxrwv8t 9ip8unt 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 elasticn(m /on(ui g.f*/ 0vuxylul1+d2 fbfbities of demand for exports and imports is less than 1. What will be thefv/( b+d2 n (u0 yl.ox/*1lgbufumf ni impact of currency depreciation on the country's trade balance?

  Select which of the following would not be consistent with a trade w/tlgqn3lu r l yz(0:n7d/9f kdeficit:

  Which of the following represents an invisible export in the bal4 x y:l+gb+e+em-al u e*)wxev1gqi -pb: qn2pance of payments (BOP) of the USyn1 xe 4*:bb ggpqeep :w-alx)+ u2ieq-+m+vl?

  Select from the table below the appropriate transmission meqg5gv*1,2 0stoq sh jechanism of a contractionary mon 0vg,sqghq2e* 5 jos1tetary 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 i+ o) c3glfaq5ln achieving which of the following policy objeclfc q3)lg+ a5otives?

  Which of the following is the most likely response for yc l2bfkff+8 -a country with a fixed exchange ratf+2 lfyb-kc f8e experiencing a sharp fall in net exports?

  A country has a fixed exch1aaw17*l.3ojfo+vqy w;gh pdange rate with the UK pound where one unit of its currency is worth £jv a;qo*lpf7 d+hwaoy3g .1 w10.80
£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 tdz6pf 2u9 zn -5w5isdt4ph+qicrb.v +o adopt a floating exchange rate?

  Which of the following policies is consistent with its objectidd uxz4 w q,q4 ir+rl)i8:tb7mve?

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