Define the term overvalued currency.ot d*iuc 9 -vhrh zw3r/q:kc/)kiev5 (

  

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 accounx:t81 m47uv d9uhsma nt surplus will have the following consequuu an 1s4 t78vd:hx9mmences except

  What will be the impact of a current account deficit on the country’s curzm ls4+z30xjkrency under a floating exchange rate sysm l03zkx+4zj stem?

  

	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)s 5u gk:s22mrt 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 effect oa .fa-a2ry0ybf an increasy -fy. 0abaar2e in interest rates in Malaysia?

  Which one of the following is not inclub +stsd r2*x8nded in the current account of the balance of payments (BOP)?x8+* dbn2s tsr

  Which of the following is an expenditure-switching po8sq0 au f9yvjh:us;3jlicy to correct a persistent current asa uq:f389u jy;hj 0svccount 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 and the sum of tho8z wvwr5ylhs9, t/*i u-nl *2*qx dame price elasticities of demand for exports and i x* tiw2*8lohwl,/m 9u*5rza-v dynsq mports is less than 1. What will be the impact of currency depreciation on the country's trade balance?

  Select which of the following would not pzb(pu9b(t3e be consistent with a trade deficit:

  Which of the following represents an invisibu.((x 1 xkubsf z0a5d qgm58kkle export in the balance of payments (BOP) of the Uf(ka xkk bu. qg 8dzxs1u(055mS?

  Select from the table below the ghp9t+j c,pgwq/93ba d+le ) eappropriate transmission mechanism of a contractionary monetary policy which involvespt9e9hj +)epb wgd3,calg/q+ 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 whh5x0 2xk +w0 vzxvo(feich of the following policy objecvkx5f(wv+o ex 20hz0x tives?

  Which of the following is the most likely response for a 8n)zs (t eb)+sh v2 82ueckemocountry with a fixed exchange rate experiencing a shankz8oee28eut+csh(sb 2 ) v )mrp fall in net exports?

  A country has a fixed exchange rate with tg:a nl2*,cbwqc s:g 3ehe UK pound where one unit of its currency is worthgec:lq32*bn:ga s ,c w £0.80
£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 not a reason to adopt a floatinga ww99ru+mva +f8o ;mq exchange rate?

  Which of the following policies is consistent with i ) j,8ml*erwuwe3hy3its objective?

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