Define the term overvalued currency. 16hs5ef.,dfqaoym ki9a0i9 )e mzrdko9is-;

  

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 surplus will hayw2r +nu5 opa b4s2:cwve the following conseque nc a su:42ywpw25rb+onces except

  What will be the impact ab- zd 5w3a8iiof a current account deficit on the country’s currency under a floatinz-w5b3 aiai8dg 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 helpxfm2 lb:) vqsr(cuifl8;yn4 u x)qc)3 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 wit -vte4 luv60xrh the likely effect of an increase in interes6ve ltv ux-r04t rates in Malaysia?

  Which one of the followinu2j jlragtv v2 :6 m6,ntx1m/2s0apsng is not included in the current account of the balance of pa aj6/n0nvrlp6 ,t1g:vmmutj2 x 2sa2syments (BOP)?

  Which of the following is an expenditure-switching policy to correct a peonu qw vxrcsdnv.9g0:ue a9 //7-3hi jrsistent current accounan:coq/ u3.9rx -vv w 0/ngise9hudj7t 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 an8s m.mbgcgpcj.t*yj zd+ 6 46kd the sum of the price elasticities of demand for exports and imports is less than 1. What will be the impact of currency depreciation on 6bcz8j..+ sdp 4cjm*6 gytmkgthe country's trade balance?

  Select which of the following would g3mv:vi n79z kwtq6.yfw/m2mnot be consistent with a trade deficit:

  Which of the following represents an invisible export in the balance of paymentfd4 4 8ju*zyvls (B4 d* vjflzu48yOP) of the US?

  Select from the table below the appropriate transmission mechanism o ki2o t2zp c+i5cxowsal( f537po7nt5f a contractionary monetary policy whi2sa (zcppl5i w55 72oo3tict7f+x konch 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 the following policy objc,,vh93t) .uzzj vo lmbs(,hd ec) z dho(l,h9jv m.,cs3tub,vztives?

  Which of the following is the most likely response for a country with a fixed exxpf /p,oedgr8;h4 nkzs;1y l5 change rate experiencing a sharp fall in npkn p,;1 zhyrdx85ofl4g;se /et exports?

  A country has a fixed exchange rate with the UK pound wholq 0zl29 ppy1ere one unit of its currency is worth £0.92ly qpo l1z0p80
£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 )(hxsghm4,exzn eg 6 q(0bzsr9er3n- a floating exchange rate?

  Which of the following policie t/ 4hgykhb,s7dm *ta21r qbp4s 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