Define the term overvalued curligs 5r/tm1/yrency.

  

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 0 dhp *g6/x sgb,bog1rsurplus will have the following consequenggo*bx p0/ rdbg,h1s6ces except

  What will be the impact of a current account deficit on the country’s curry0pvcez8 ,c19j l:m vxency under a floating exchange r:x0v zcyc vm1j,l 9ep8ate 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 x+ f9a hxl6c0xuv1y99ndmk)n 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 consistent with the likely effect ofbc7-yy0ou4(p u+h3yzxb 2pbv an incr ybp0+ up73(u2b4xzcbhy -ovyease in interest rates in Malaysia?

  Which one of the following is not included in the current accou in.7cq(yeh y- iavr ,l/sx3)qnt of the balance of paymentsc.ie3rnv - q yli,(hsxay/)q 7 (BOP)?

  Which of the following is an expenditure-switchingy7 v )kx0bvpa7 policy to correct a persistent cur va7xpv7 yb)0krent 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 priczsq o96isv .0ek.gf l8e elasticities of demand for exports and importsslfo8q 6ve9g.i. kz0 s is less than 1. What will be the impact of currency depreciation on the country's trade balance?

  Select which of the foll+zcb0m)jg: 13xo. tc vyt kgx*mj0/ bmowing would not be consistent with a trade deficit:

  Which of the following represen*v(-d hdl6fqy ts an invisible export in the balance of payments (BOP) of the US?fyq-lvd*h (6d

  Select from the table below the appropriate transmission mechanism of a contrdmszlg,x l tusum3 yt,2xu79+af v9(3actionary monetary policy which involves raising interest rates to achieve an externu zsx(l7+mam3 gdtl,9 uy3 2 xft,vu9sal 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 which of the follojfm;in u0c9( fwing policy objectives?jun 9(0;ffci m

  Which of the following is the most likely response for a country witp 3mn+ur/yi85 : kixdeh a fixed exchange rate experiencing a sharp fall in/du:5pi riek8+ mx ny3 net exports?

  A country has a fixed exchange rate with ik;u7 cvl 5at6o9xw-j.zh) gkthe UK pound where one unit of its currency is worth £0l u - xw6k givk.)azc;j9oht75.80
£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 followinga9wumz1rjsy;)-errt 7z sy 8+ is not a reason to adopt a floating exchange rate?

  Which of the following policies is consist wf,fphk bz4*ie;e .z4ent 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