Define the term overvalued up9skgur.ye,s v0d ,.n6 4rd h/ sz7lscurrency.

  

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 have the following d 6rya)l04dzxconsequenc6d40xzrl )ya des except

  What will be the impact of a current account deficit on the country’s cpi,a7i9oz,i( qp os .6c ynf*ourrency under a floating exchange rate system nz7o sa6op.(iof c ,iipqy,*9?

  

	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 t5f- hanz:d+ tdss;,g xjbhh( 5pq +z8lhe 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 with the likely effect ofe oz64uw* 9iew(/k8olg eidh-d +wf0m an increase in inteh0o 6mkw/+u gwe(lo iei*zefd4 98w-drest rates in Malaysia?

  Which one of the following is not incl:9td:poe4zp 32iev .l1ga6qsq ou2 mwuded in the current account of the balancegpa2 .9 l 216w:z 3mvdiote4uo eqpsq: of payments (BOP)?

  Which of the following is an e3ifo 9s3 nwts0xpenditure-switching policy to correct a persistent90i3fswst 3on current account 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 the prvarxv 3f8*z6cayic)8 ice elasticities of demand for exports aa v zx*cia 68)yvf83rcnd imports is less than 1. What will be the impact of currency depreciation on the country's trade balance?

  Select which of the followinr l.e-4lvx6qa g would not be consistent with a trade deficit:

  Which of the following represents an inzlgrb:.k5y3 y7) p jftvisible export in the balance of payments (BOP) 5 3yjk gp. 7lr:zty)fbof the US?

  Select from the table below the appropriate transmission mechanism of a con/ow,qlbl y)h8 tractionary monetary policy which involves r8) loywbl,h/qaising 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 likey9de7y /8gz xameq9abt t:.x4 ly aid in achieving which of the following policy objectzxa9. et7ebta:8qy4m yg/ 9xdives?

  Which of the followi 6vrekijy 8m9yn d))f5ng is the most likely response for a country with a fixed exchange rate experiey5e6fm8 ydivr 9)nj) kncing a sharp fall in net exports?

  A country has a fixed exchange rate with the UK pound where one unit -v(q:jn dvay )of its currency vna(:) vdqyj- is worth £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 exchange6+l;1c2yhu*c jq2*iafuusu p(p 4 ake rate?

  Which of the following policies is consistent with its objective? n5h)mo:bcv0l 51rt nk

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