Define the term overvalued curren+x(y l9u-y-xelj,czf6r p zq+cy.

  

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 a1(k/7w 1kggt+ 7wlhb jyez c8j+2m crlccount surplus will have the following consequences excep+w2e8(ltrzc w71 jjc/g y71kmhg+lbk t

  What will be the impact of a current account deficit on the country’s 0 gu;4.i okkel(zuxu-kw jk 88currency under a floating exchangeu8-;kkz (wo . e4jglukxkui08 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 q6qzo;xj+q (o help improve 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 likely effecta tme xmsfy g+(v485*v of an increase in interest rates (8fg sy*t xmvme45av+ in Malaysia?

  Which one of the following is not included in the current accouy7g ofl / hfs(p1zn0j/nt of the balance of paymentsn0/lgjfspy(17/ hzfo (BOP)?

  Which of the following is an expenditure-sm/csuto :*) 1zd h-y8 ouyl5zfwitching policy to correct a persistent current account def8f1yu l czt uo/:5 y-)dzo*hsmicit?

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 th4 sex2 7 hc*/ylvk2ptpe sum of the price elasticities of demand for exports and imports is less k/p*lp eh ytv4xc2s27 than 1. What will be the impact of currency depreciation on the country's trade balance?

  Select which of the foll- cx8p mkwek;8owing would not be consistent with a trade deficit:

  Which of the following represents an invisible expor6dj kfr6xb0j;t in the balance of payments (BOP6df rxk;0jb6 j) of the US?

  Select from the table below the appropriate transmission mechanism of a contract-6x) udg;wxbsq3m/xqi a yz f25,.aztionary monetary policy which involves raising interb,mz6xux a3 qs tg;yw5q.f)a/xz2 i -dest 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 likely62ln9b5khbco2t xm )x2:moc e aid in achieving which of the following policy objectives?25bomec n ) lxo2tx:hb2k6m 9c

  Which of the following isjt+)5 shp 7rafwhbz./ the most likely response for a country with a fixed exchange rate experiencing +h. jh)as 7fz5r/ pwtba sharp fall in net exports?

  A country has a fixed exchange rate with the aa5ij )2gkf p., o31umev2m hqUK pound where one unit of its currency is worth £0. 2ph53mu,gv f.qiaj ka2em1)o80
£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 not2 d6bgnex (0hm-cks* d a reason to adopt a floating exchange rate?

  Which of the following policies is consisk9+yyi tk i-tnhc-14ktent 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