Define the term overvalued curroi riuk6-nn.z 4zk c-kp;4ii.ency.

  

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 qdu,l z7* oym t93)j2cdm2ei.w9skdtaccount surplus will have the following consequo*my,km)et l73wu2jtd zs qdcd i992.ences except

  What will be the imp wdgxiv;.un- .act of a current account deficit on the country’s currency unde. u wgdv-.xi;nr a floating 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 k7iqfmzx8m5 ihlh0:i)l 8u*d(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 km;/rpd a,x t(statements is not consistent with the likely effect of an increase in inte,/akxrp( ;td mrest rates in Malaysia?

  Which one of the following is not included in the current account of the balhj/c xv6k kkd1/lsylwr (0 :q/ance of payments (BOdllk1rkxq/(wc :jkv 06y/sh /P)?

  Which of the following is an expenditure-switch t4:jfed;uhq lch mip 7h188j2ing policy to correct a persistent curjm qp7tu1h 8lchh 82ief;d:4jrent 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 t84 tn+ 9sije tw(y*p)ex5kz1 nxzrjt5he sum of the price elasticities of demand for exports and imports is less than 1. What will be the impact of currency deprecykiwttn 8n) +(x95*tjszpx4z je51er iation on the country's trade balance?

  Select which of the foll 1:w:( mi 8pwp*tuwwjcowing would not be consistent with a trade deficit:

  Which of the following represents an invisible export in the balance rbbu*t)rzo+5ccq.t n cfg.2 6 of payments + o u c6g.bzc rf*nq)rct2bt5.(BOP) of the US?

  Select from the table below the approuv8 ) ,qb:lazejt9 gkcpi8x3) priate transmission mechanism of a contractionary monetary policy which involvulij q8pz 9) 8:agktb,cx ev)3es 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 achri.lqep /l-kxhw;fzvn(,0 7x ou 20suieving which of the following policy objecti xs/(q,wo 7vh rx pz.keul;2f-nui0 l0ves?

  Which of the following is the most likely response for a de7f0 kke(-(g hx9fd1/ ou ctvzrah7+country with a fixed exchange teekdr d(+zvx gu7fkh-(co1/0hf 7a9 rate experiencing a sharp fall in net exports?

  A country has a fixed exchange jt24ix8bkzq00k ckb .rate with the UK pound where one unit of its currency is worth £0.800zq8 bktkcb . 42kjxi0
£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 to adopt a floatinu+))oh j nu5/- dvbylng exchange rate?

  Which of the following policies is consistend9v9(b;jrr eqk.a+g7 gslus . t 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