Define the term overvalued currb3gkj 2y7)c+vkt c*exency.

  

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 vq4oh7p 0 q9xc)7wk:ppzeqb* surplus will have the following consequences except kp7cwox q9h:) z074q*b pqvep

  What will be the impact of a current account deficit on the coo ff 01;pmol-muntry’s currency under a floatloo-fpm0f ;1 ming 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 imasi*r )w p+ q-5p7caroprove 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 consist0 prt)tc r0jl0a f8.msent with the likely effect of an increase in interest rates in Mal plc0stj8r rfat0m .)0aysia?

  Which one of the following is not inclu.eoqmaj gld5ypa8*46k 7a 4wxded in the current account of the balance of paymgy *4p a7aq eo.xlk6d8mj4wa5 ents (BOP)?

  Which of the following is an expendjq ; :d p(-nqzbyrhz(7iture-switching policy to correct a persistent cu(z q( ;qpbh7 :-rzjdynrrent 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 uv zgke6fs:e. gxv6ydc1 u;xk a20w5: the price elasticities of demand s0gyk25fvu6d ::6.z ca1v e;ex wgku xfor exports and imports is less than 1. What will be the impact of currency depreciation on the country's trade balance?

  Select which of the following would not be consistent cge,g)jf 88 )tvd :kxw s0tns1with a trade deficit:

  Which of the following represents an invisible export in the balance of paymen p fh00k0d7yhnts (BOP) of the USdph 00kfn h07y?

  Select from the table below the appropriate tra uem)h7 -v y4 qebhzjk.*3 7rjg/te3hansmission mechanism of a contractionary monetary pomtbv7ez y/q e7h 3k)j-hje34u*g .ahrlicy 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 in achieving which of+)/bt qrmad +phv 22 uu7ddr0 bc.uqk9 the following policy obje cu +97dqmvkq)d0u h+b 22tr /upb.adrctives?

  Which of the following is the most likely response for a counmlzmjl7)c;s/k7;hi w c d0z k)vv77awtry with a fixed exchange rate experiencing a)7kvs0j/ ;77h;dk)zw wml ic vzmcal7 sharp fall in net exports?

  A country has a fixed ht(wgzl(0u8 z exchange rate with the UK pound where one unit of its currency is worth £0.80 ( l8g0uzz(wth
£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 reahh0 0oym1rhny vz1(ug0k. bs47mdw w)son to adopt a floating exchange rate?

  Which of the following -pruu t ov5iw7eu0oi ho8)3+mpolicies 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