Define the term overvaldhs4qdm hy )fg )g6u5.ued 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 pers0ua,kop8w0 f * vmp6qkistent current account surplus will have the following consequences0 op,vf0uw p8mkk6 aq* except

  What will be the impact of a current account deficitan7pfu p1anmz n va6.jqr0,f4ail*5/ on the country’s currency undan6fp.f 7 nqi4j m*a/v1lu5a,a0przn er 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 bm omy) l4b9 vp28jla*ialance 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 consi9w4ku1njrn3s stent with the likely effect of an increase snk 43n 9w1jurin interest rates in Malaysia?

  Which one of the following is not included in the current w67x 3cnrcp:fpk a/xq;yv 5y) account of the balance of pnfcva 3y)xcyw x k65;r/ 7p:pqayments (BOP)?

  Which of the following is an expenditure-switching policy to c.n3dy -yn4shhorrect a persistent current account deficit? yn-h3 h4ys dn.

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 cth4t 2heh;yhoa)e, ( deficit and the sum of the price elasticities of demand for exports and imports is less than 1. What will be the impact of currency depreciation 4) c ;eoht2heht(ah,yon the country's trade balance?

  Select which of the following woue9u kpgst2; g,ld not be consistent with a trade deficit:

  Which of the following represent x0kuks..0t jhs an invisible export in the balance of payments (BOP) of theku j.k0sx t.0h US?

  Select from the table below the appropriate transmission mechanism of tu o+: e6buk3za contractionary monetary policy t+k 6z3u:ebouwhich 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 likelyk5p+4br8a;cg set3uh5) emp;h7 fbpm aid in achieving which of the following policy objecp)75m+bhseg p3t par;ce;m4b8 kuhf5tives?

  Which of the following ido ijp a:v3+(1.isc vns the most likely response for a country with a fixed exchandjv1 pi.nv(: +acsi3o ge rate experiencing a sharp fall in net exports?

  A country has a fixed exchange rate w c fw.04jryvi(ith the UK pound where one unit of its currency is worth £0.0cv .y r(wj4fi80
£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 isr6/cykn6/u oebl: h/ t1baw0.m1 pk9l v6sezi not a reason to adopt a floating exchange rate?

  Which of the following pol+ xo822 wnflgxicies 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