Define the term overvalued ai)g wq.;7p.ksdvl6 p 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 persiste5zf 9b+hga cngd wob(ta7, c58nt current account surplus will have the following consequed gn(c95ow z+abc8 f,5thb7 agnces except

  What will be the impact of a current account deficit on the cou4 gg-7j.xasx xu+/:f3rgalr xntry’s currency under a floating exchange rate system-3.f :gx rsg 7x4rx/gja+au lx?

  

	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 izvpv*cek+m7.dv-p *yhh h 5(wmprove 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 witc,4q 1qwh jy:x5l xxe:6lt:ojh the likely effect of an increase in interest exoqlx: x yl1,w:h:4q5 6 jjtcrates in Malaysia?

  Which one of the following is not included in the curwu7xhh *r 0o,qrent account of the balance of pa ,*xw7 0rouhhqyments (BOP)?

  Which of the following is an expenditure-switching pnuc 4 3k4ot7g vsznd05 lpy.wx1*70yvju fo6policy to correct a persistent currenj6u g 3pfx.vvunz41s7 o0kp l ytn0c*yo7w d54t 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 de2ra2vevwxj: lgbdzi+ 7ma/s -v3-d-g ficit and the sum of the price elasticities of demand for exports and imports is less than 1. Wzsjmd3eg : -ad 2-abgi-xv+v/vw2 7rlhat will be the impact of currency depreciation on the country's trade balance?

  Select which of the following would not be coz7md)/ma46soa q2m:)x xhi grnsistent with a trade deficit:

  Which of the following represents o89wrqi 3mis3 an invisible export in the balance of payments (BOP) of thw3imr893o isqe US?

  Select from the table below the appropri dyif8*ko1*micn3 ek-on g,u7 ate transmission mechanism of a contractionary monetary policy which involves raisu *y*i8gke3 7nfcni m-1,dokoing 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 aidlb+xq0,d *xnnq7ev3 t in achieving which of the following policy objectives?,qen3 n0t*dv bx+7l xq

  Which of the following is the most likely responsegt 66q.7h)f. nyw xxcibvfx0 i5d,z8c for a country with a fixed exchange rate experiencing a shar6vz7,t0gyq ) hid8x.fc 6i.fc x5bnwxp fall in net exports?

  A country has a fixed exchange rate with the UK pound where one unit of its cufq ki-rjczi2 f-h(fm:+gx n25rrency is worth £0.(2hz2f c-ig5k:iqf+xm jn rf -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 n2 fhr9p9yk3l got a reason to adopt a floating exchange rate?

  Which of the following policies is3q,to6 qttn4to :v0ka 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