Define the term overvaluej4yx1hd+x i n.d 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 current account surplus will have the following conq,rs 30uq 4na0/5ca awsb) xsxsequences waqn)5/40s s3uaq crxa x0b, sexcept

  What will be the impact of a current account deficit on thzv* uo8f mmn:b7l2 di)lex-l6e country’s currency under a floating exchange rfilvlezb 8 nom72dl*mx u-:6)ate 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 curref+k s52v8 puajd+ g;xancy 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 consistent with the lqju)fd-2fv) 3rn kb6p ikely effect of an increrqu 3k npd2jv)f)6f-base in interest rates in Malaysia?

  Which one of the following is not included in the current1i krs, 8doo+)i)wdb1- cudg c account of the balance of paymi)ou1d kgddc+ )srw -boi1,8cents (BOP)?

  Which of the following is an expenditure-switching p*qb+r0zn xfs cea r+4+2mwng5olicy to correct a persistent current ax *w0smagfn 2+r+eq+z4rcn b5ccount 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 jfj*inde2 /ix y msog5/f+7v:sum of the price elasticities of demand fm:gf i x/ nji/y2e75df*voj+ sor exports and imports is less than 1. What will be the impact of currency depreciation on the country's trade balance?

  Select which of the foll o;/9 c:os0 rxjt xn)/h6yguuhowing would not be consistent with a trade deficit:

  Which of the following represents px :.p h(n::itn.etmn5 idqm/ an invisible export in the balance of payments (BOPite:/n p pnd:q.mhmt5(:inx.) of the US?

  Select from the table below the appropriate transmission mechanism of q+ cev(;dxe/m(k+v d ya (5hmpa contractionary(e+yexv qakpd;/5( (mh +v mdc monetary 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 in achieving whm dwoby7f*5.w mjj83oich of the following policy objecyo7ow3*jdb. m5j 8f wmtives?

  Which of the followinlpld v / d-wbui0x*6c4g is the most likely response for a country with a fixed exchange rate experiencing a shad ub4i-*l0v p/ l6cdwxrp fall in net exports?

  A country has a fixed exchang b n:yoi:g3 g01(ixpdre rate with the UK pound where one unit of its currenxi3 p:0r i yg:d(n1bgocy 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 a floa6spgdg -z8k5iuxl-5t 2 +utg fting exchange rate?

  Which of the following policies is con8q7o+ yeaajc4jcr5mn- 4pqr -sistent 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