Define the term over-n:g vn 3.-pyu3p qmhgvalued 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 persistent current account sur 4oap ,e ,.nkrqsk+t;tplus will have the following conseqek+q a sk4p; .no,,rttuences except

  What will be the impact of a current account defici-u .x2r c+qu(:dbt j rw.qwhu-t on the country’s currency under a qh. ucxrrq+w:-.2u ut(wbj- dfloating 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 (BOT) ifb0aa gsix1*;s:

	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 stateme)q vd t.t82)r6fl w/3qcjv pw + fir7k)njz2ymnts is not consistent with the likely effect of an increase in interest ratesf)jqw jrv6ct q.fz) t7k2v 3)drnl y+m pw82/i in Malaysia?

  Which one of the following is not included in the t j0gl :95j ryhnrfe yp*h1r4.current account of the balance of payments (BO jtn .4r 5e9gp1yr0l fyjhhr:*P)?

  Which of the following is o .x;pd1c b5rjan expenditure-switching policy to correct a persistent current account deficit? r .c1jpx;o 5db

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 the price5fe li1wz/grzt5 )of 9-wq t2s elasticities of demand for exports and imports is less than 1. What will be thwi 5szl2e1z9tgw-)ff5q t/or e impact of currency depreciation on the country's trade balance?

  Select which of the following would not be consistent with a ahn :- qhyasv- 3a*3pztrade deficit:

  Which of the following represents an invisible export in the balance z9ss7 -pfj6 cqof payments (BOP) of t7s qpz6j9fs -che US?

  Select from the table below the appropriate transmission mechanism 55thjx-mm8 4aop oky0of a contractionary monetary policy which involves rai- x854yt0oa kpjm h5mosing 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 likelych4k54o,e8n ej7fwy h aid in achieving which of the following policy objective87f ,e5h cw4k4o jyhnes?

  Which of the following is the most likely response for a country dqpnjs ld1+6 /7fk w2cwith a fixed exchange rate experiencing a s1dfp ckw+26sd /7qjlnharp fall in net exports?

  A country has a fixed exl4(vd 2myg qu e 21hsmlj)fh-;change rate with the UK pound where one unit of its currency is worth £0.8fh 14- ul2h2g(m y;em)qvsdl j0
£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 floati:p,, z2ez .t)qxox jnlqnb32/ 3rbfy nng exchange rate?

  Which of the following policies is consistent with its objby.og :0mb5 ti b.ip9qective?

	Policy	Objective
A.	Devaluation	Reducing inflation
B.	Revaluation	Reducing unemployment
C.	Devaluation	Reduce a current account surplus
D.	Revaluation	Improve living standards