Define the term overvalued)+ f2gmsrc -qc 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 persistent cwif, bbu7o tz8s +0ol8urrent account surplus will have the following consequences except+bi owo8 7f,zs8u 0tlb

  What will be the impact of a currerdfj l 9xw/mo;6bs. j4nt account deficit on the country’s currency under a floating exchange 9;4mjxowsb 6r d f/lj.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 curreno *2e1ijnnto(x7c q zb*b.f9fcy will help 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 consim*iod4:6 z lzistent with the likely effect of an increase zm4dii6*z :olin interest rates in Malaysia?

  Which one of the following is not included in the curren2p o9ieto2:/l ndda3jz 2epk) t account of the balance of ppdp2lo d9at:)i3 eo ze/kj2n2ayments (BOP)?

  Which of the following is an expenditure-switching policy to correct/ y:syi hnlh(/ a persistenh/yi: /(s hnylt 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 *io+q ajogl*rlkzveq6; ;qu78 ,8kobthe sum of the price elasticities of demand for exports and imoeju 8;lio 67qo8*v;kl qa*zkbr ,g+qports is less than 1. What will be the impact of currency depreciation on the country's trade balance?

  Select which of the following woqolt u40b:u7hmwf 3*x ;(teit uld not be consistent with a trade deficit:

  Which of the following rerzx*1kfl:; papresents an invisible export in the balance of payments (BOf pl*karx;1z :P) of the US?

  Select from the table below the appropriatezoo6o1. ;c.aoyz+*dsn uqn 7u transmission mechanism of a contractionary monetary policy which involves raising interest rates to achieve an .qo7y no uzsnac z.o;d6o+u*1external 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 in achieving whic1c5jud. no9g ec9dsx *h of the following policy objecdu.j9scecn59 xdo g 1*tives?

  Which of the following i5ztztey6n7nz28 -e-fj, a8peom it a1 s the most likely response for a country with a fixed exchange rate experiencing a sharp fall iz5neyn, 8m72i j--t1 ezeaafotp6t8zn net exports?

  A country has a fixed exchange rate with the UK pound where one uns, eq8(nu3ybwi+ p5o2xfynl 8it of its currency is worth £0.+lx iyubyfp q3,2w(se58n8on80
£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 floati0 e3)2p-lls.mv w b +yannopz7ng exchange rate?

  Which of the following policies is consiste7(wez b6dqu y0nt 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