Define the term overvalue,e7lq5z(qbp uuhu-6l d 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 ac 8k y:i,q.og,emqz4 pmcount surplus will have the following consequences exqemimog 8 p,4y:k z,q.cept

  What will be the impact of a current accounp62a6a ) gg sb,dy+icwt deficit on the country’s currency under a floatip wg2y6ac,)gs+ba d6ing 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 imp2)dd xp4 xm mx:zx3gv2rove 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 followin03n.lgm6+i4 js b5jw:j yjuvvg statements is not consistent with the likely effect of an i40lj 3+5 snvbvj:uimj.jw yg6ncrease in interest rates in Malaysia?

  Which one of the following is not included invw l/,zpmz- 0w the current account of the balancevmw0l, wpzz-/ of payments (BOP)?

  Which of the following ixympid:v1y h5n 8) b+ss an expenditure-switching policy to correct a persistent current account deficitibp+ )yvny8 :m5hs 1xd?

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 anz.a y7r ;(x/wzxw*ucyd the sum of the price elasticities of demand for exports and imports is less than 1u /wxr7;yzc (xzaw.y*. What will be the impact of currency depreciation on the country's trade balance?

  Select which of the following would not be cont i1pr ydasn6 (1(ha( f.ktr5bsistent with a trade deficit:

  Which of the following represents an invisibllw(*0 p 8,sszda aud(ae export in the balance of payments (BOP) of the0 pdzad( *,laasu(8ws US?

  Select from the table below the appropriate transmission mecha,7rrxkj,e fu* nism of a contractejfk u*x7,r,r ionary monetary policy which 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 mo yzsmt5tv dbd5i6:y 0nq,wi 7*st likely aid in achieving which of the following policy objq6 7tm*bvy:dn zw i0d,i55st yectives?

  Which of the following is tl7p;jxbjn 3 (qe+4py7c2 x dhn).mppthe most likely response for a country with a fixed exchange rate experiencing a sharp fall in np72xp)7nj.l mq 43 +jpt(;cp xh dbneyet exports?

  A country has a fixed exchange rate with the UK pound where one uahwcct3wy3yau1y : m 9(mc;4l nit of its currency is worth £0.80 3t(;9a4hwam cmwu31 y yylc c:
£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 ad7p/)dq noxsz n8ktpt g:mcb;hjmg; :( (uu/ )gopt a floating exchange rate?

  Which of the following policies is f* c.;qwc/tkzconsistent 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