Define the term overvalued currenm3cdv , g(wsl(cy.

  

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 currenp 4 -m;j--d h7js,sjcesf1xvqbed:/c t account surplus will have the following consequenc- hcse s,d7jd4j x -/fv;1j:-eqmcpbses except

  What will be the impact of a current account deficit on the country’s cur1;fh o8pw+ h*jhvo )ilrency under a floating exchan8h l1o;v)oi*fwhjhp +ge 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 impwxd p xo,g3/.rrove the 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 thef; 0226vav e5 jdspzkvuyh45 y likely effect of an incryk2;h5av2v4e5 j ydup zs60vf ease in interest rates in Malaysia?

  Which one of the following is not included in the current accer0c;0u e 6wy yqon541w9gjrympw3bzxr:- r3ount of the balance of payments (Byrw4cb0r wwmgy3r 5:e0- 1yqz6e;un o9rxj p3OP)?

  Which of the following is an expenditure-switching policy to correct a pe)g5j/ou9ik :v;qxe wc rsistent current accou5e:; g ci9jwkq/ov )xunt 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 price elast(5j;hd oib7 zr di;.bzicities of demand for exports and imports is less than 1. What will be the impact of currency depreciation on the j izbh.;5doz b(i;dr 7country's trade balance?

  Select which of the following would not be consistent with a trade diy8q*eo/7qpjx; ithv l7ef tmd *1 u04eficit:

  Which of the following represents an invisible export in the balance ofr5 fe fsbssd eu;.7n/1 payments (BOP) of the U1r7s sb eueffsd/; .n5S?

  Select from the table belo.hfzp) h2jql3w the appropriate transmission mechanism of a contractionary monetary policy which involves raising interest rates to achieve an external balance. h pfhj. 3l2q)z

	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 whic cz, 05fdwr.0nf,5ek +thrjy ch of the following policy objectn d00ykj +thrz,fcr5fw.c ,e5ives?

  Which of the following is theg (aw vryh 05as):eoe 2.ug/p7o)spao most likely response for a country with a fixed exchange rate experiencing a sharp vo.pu/pa as2ohya g :7))e5 sgrwoe(0fall in net exports?

  A country has a fixed exchange rate with they-lvy8oux.bw46(p fdl dt+m d e8.ht : UK pound where one unit of its curren4d y:y-+vlld f dxo.h bmeu(8tw.t68 pcy 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 amu5k- rzb 6wy8knj1lyq24 c:y floating exchange rate?

  Which of the following policies is consisz. 1w3fev l+jetent 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