Define the term overvalued curre l:(:lxjn9 hilvwpl1)ncy.

  

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 follow,pz+agi xp hh5 l1z26cv xj,x/ing consequences exceptvhl+xj125, hc ppx/z6gz a,xi

  What will be the impact of a current account deficit on the p 7g6gvid9 g+ecountry’s currency under a fld 9 vgg+e6pi7goating 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 heliel*+ms7+t3ifs4pcw8 .tjj w n2s8 fgp improve 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 the likiq6 q0nl)*7vs)xs;( z mtoeuxsc+ md5ely effect of an increase in interest rates ) 6z*(eqivdmx ;cs m7tus)+05xosq n lin Malaysia?

  Which one of the following 1v 5pw:fkrc /jis not included in the current account of the balance of paymenfj /p :c5v1kwrts (BOP)?

  Which of the following is an expenditure-switching policy -rwia 1l99yfwi 4 f6qyvklq7 3to correct a persistent current account l967wwiiffyl1q4aqry- 9v k3 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 elanfw(5+bg g5 gksticities of demand for exports an5bk(g +gn5 fwgd imports is less than 1. What will be the impact of currency depreciation on the country's trade balance?

  Select which of the following would not be consistent withxo)x3zxoa ) djv 4.,+n dhyli,n1fh0 w a trade deficit:

  Which of the following represents an inv qj .yl ))uzq1nl;5;qvlp9t+zan dl w6isible export in the balance of payments (Bqp u la ;jqlz)dl .;n )z96vt1qywn+5lOP) of the US?

  Select from the table below thr y v*kz25rzsb,udt+gz a1i*lzi;+ ,ve appropriate transmission mechanism of a contractionary monetary policy whiv1t *,ri,5grz2; i* au+kdzl+z vbzsych 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 mos dwu2/mm/ /eaht likely aid in achieving which of the following policy objectiv/ud/am2mw/he es?

  Which of the following is the most likuqx8:)sx mpr9 ely response for a country with a fixed exchange rate experiencing a sx:m9rp) 8q xusharp fall in net exports?

  A country has a fixed exchange rate wit f nd98nkqb .wlc-smj9o-c0 6lh the UK pound where one unit of its curr0ml- l 99c 6ofkdqsnw-. cjbn8ency 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 reall, q8/*zflkgwm 5t+jbn 4iw *son to adopt a floating exchange rate?

  Which of the following policies is consistent with its objective?*lga 5akq/e79/xwsbx

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