Define the term overvalued c6icxg z-hp7kgv *0nw4rq 7e0x urrency.

  

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 folm1 +* xhenu,vkvs(+ /rig8-qn xsda g8lowing consrvv xnh,m + ksdas8g/n(ixe *u8g q1+-equences except

  What will be the impact of1 wm9lhc1 / tz(0cbzkv a current account deficit on the country’s currency under a floating exchangezv1lc 0k/(w1hz tb c9m 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 trade (BOT) x 82:7gkn1ix*m, ws5 bjfgvix 5a.hskif:

	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 theq arg+d iq :n ip6d55dd6+iog1 likely effect of an increase i ig+6ddr1n igqp:+d5 ia5q d6on interest rates in Malaysia?

  Which one of the follar)79/i1n o-ds/oo epc7og o,umf o5eowing is not included in the current account of the balance of payments (BOPonr e o/eof/u )1,g m7c9-5o7ooispad)?

  Which of the following is an expendhozt nbb39yy - ne40x*lsq kpybh +2zh43g (u+iture-switching policy to correct a persistent current b 4syqk(nghp49-by0lztehh u3n+y 23* oz x+baccount 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 tcgv(gx )2m/hb l5o/az;9 j gbnkxu33and the sum of the price elasticities of demand for exports and imports is less than 1. What will be the impact of currencutk / (;lx2 )/3boxgj3g5 9c vhznbgamy depreciation on the country's trade balance?

  Select which of the following would notns )7z:47kxytn 0byatp.m2 s7opns +c be consistent with a trade deficit:

  Which of the following represents an invisible export in the balanco c 9)uz: zdj(ys2wf*m*,mv ape of payments (BOP) of the U2,zumcm*pyj)asdw*9 f ( z:ovS?

  Select from the table below thr)rwz 47f ;rk2(tabi/f p sc9ze appropriate transmission mechanism of a contractionary monetarybf2ricw pt/;rf9)za (sr4zk7 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 most likely aid inpgf 9(j -tjsf4 achieving which of the following policy objec94g pjjs(-tf ftives?

  Which of the following is the most likely response for a country with a:2 .f jr9mcn.3fn6eort uvq:g fixed exchange rate experiencing a sharp fall in net f. nn9rcm qug2.:re3t ojvf :6exports?

  A country has a fixed exchange rate with the UK pound where one unit o5d4c,e w+orm vf its currency is worthmr+4v we5,c do £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 exchanis tl s gm7()lt:miue,mb+ o(6ge rate?

  Which of the following policies is consistent with it cv te7ldu;/ s-.cdhb-s objective?

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