Define the term overvalued ctadzwi 6wwq1-zkk to:l9+t2, urrency.

  

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 surplusei4x 2ll ) ez h 2nxlk+d+/)8py/qlygc will have the following consequences exce8 + lyqi/pe/+x4e)g2zy) h2nk dllxlc pt

  What will be the impact of a current account deficit on the country’s currency u6b : (/ueo ;gvcndhnk-nder a floating exnh(dne:6 ko g/c;u-v bchange 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 imprkpzgs 7s f8)2cove the balance of 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 statements is not consistent with the wmb ntn 8*s:k4c2pn,mm/( va3c xz3 etlikely effect of an increase in intere n3 na:n e*w/ztt8cmxs,v2(3bmmp4 kcst rates in Malaysia?

  Which one of the following is not included in the currkl/f3 ymp2, zrent account of the balance mlr3fk ,zpy/ 2of payments (BOP)?

  Which of the following x k67tb htu)x 8qjd,u)3ik;st4,p x amjr(mr(is an expenditure-switching policy to correct a persistent cuspim r4u(q, b,6; 8h7ma)xrud t)(t3jk kxjxtrrent 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 tradlct-mgu b/hw)s l4v.)d8r4 h ie deficit and the sum of the price elasticities of demand for exports and imports is less than 1. What wis)ch-4)4tv8rwu lid b hgl. m/ll be the impact of currency depreciation on the country's trade balance?

  Select which of the following would not be6b0 fxxe rm*8r consistent with a trade deficit:

  Which of the following represents an inviw rm;1z f.e2yrl,r ca4q,fu g3sible export in the balance of payments (BOP) of the ar3m g u;f2ly,zrfqw4 e.1r,c US?

  Select from the table below the appropriate transmission mechanism 5mmyu o 91q(ngof a contractionary monetary policy which involves raising interest rates to achieve an external balng915u(omqm yance.

	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)iyprs/mpd -c 73r v3e likely aid in achieving which of the following policy objectivesvsp)erm7- rd3p cy3/i ?

  Which of the following is the most likely response for nf+o-nel+wks i.rbu.w,fyw k )6 +4aea country with a fixed exchange rane+lk)b.f+ kwsre,f6i yo.n ua+4w w -te experiencing a sharp fall in net exports?

  A country has a fixed exchange rate with the UK pound whieb-.iuduua4 ja,c 2 )ere one unit of its currency is worth £0.80deiu ja,4.) b2cuui-a
£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 reawpq b/88vk7 rhvvj02 rson to adopt a floating exchange rate?

  Which of the following policies is chm tp tgn3e ((l5//uv;z7(xb qd(ph fponsistent 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