Define the term overvalued curncja jt20k+hi;a)c5i rency.

  

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 hawns bo4t)1c:px))bscve the following conseq)bco:c ss1)xp4n )bw tuences except

  What will be the impact of a current account deficit on the v.tjqhxkk, (7 cj -h-ncountry’s currency unkhk- cqx(n,v-j7.j t hder a floating 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 tra j1: gfzfm;s;qde (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 t ,nacx3tf:axh )t6- nhhe likely effect of an cxtnt3- ) : a,xahhn6fincrease in interest rates in Malaysia?

  Which one of the following is not included in the current account of the bala mhch.;j(z++f s4cili nce of payme4c;( hcihl+f + m.jzsints (BOP)?

  Which of the following iqfp up:zhq +nyo813x p,,6sgbi 4-r jis an expenditure-switching policy to correct a persistent current account deficit? rihyqz3-8,q1o jpp+ fs,n6ixp4gbu :

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 andg2rcw0zy /z2 j the sum of the price elasticities of demand for exports and imports is less than 1. What will2w/r2yzz0 cjg be the impact of currency depreciation on the country's trade balance?

  Select which of the following would not be consistentfi m k6- pjla:8nxl0)n,u00wldigf,p with a trade deficit:

  Which of the following represents an invisible ex /er3al sw4r:qport in the balance of payments (BOP) of the lr sq3 w:4e/arUS?

  Select from the table below the appropriate transmission mechazxz79ry+lk+ p1ldz ;is/3z g pnism of a contractionary monetary policy which involvesz+py+g lkx;17zs l9 rzp/ iz3d 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 j q5c7pme-7dqk 3a a8fthe following policy objectives?8-a3 q7cf7ekqp mj5da

  Which of the following is the most likely response for a country with a u 0 jjse(o41jkrzgg +97wh6ndfixed exchang hr j1z(+jo4 jguew 9dg70n6ske rate experiencing a sharp fall in net exports?

  A country has a fixed exchanged50xya8v ys:3jadn ,7n. r uwx rate with the UK pound where one unit of its currency is wortx ddaxy,v:8nw 0ay5jn3sur. 7h £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 floating exchange r4yf/h*s0q god+(k uxc ate?

  Which of the following policies sdl idi.vh;2r .flc.9is 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