Define the term overvalued cu9 (iy-mf0 ++kpx qcchbrrency.

  

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 persistfd -f -1u5rt*uy5lpssent current account surplus will have the following consequences exce -f l-1sts *rfud55yuppt

  What will be the impact of a current account )l c)6,agsfsv1k:ut5qg3spp per) 0e deficit on the country’s currency under a floating exchange rate sy5 )e g)tl)g vcp0:6sruk1pps,e3saqf stem?

  

	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 improve the balance of trade suv +ej py8.0a(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 statemenvm(2una 27fyp9 wh:xl ts is not consistent with the likely effect of an 2:n7u9 x p(yah2fwvlm increase in interest rates in Malaysia?

  Which one of the following is not included in the current o ozb4+*:ql,2owzzfaaccount of the balance of payments o2zazzf : 4bqo*+w lo,(BOP)?

  Which of the following is an expenditure-switching policy to correct a per/e,8d xwfh w0 +bxloe:sistent current acwo,xed8+ 0/bfe lw xh:count 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 pric;:49dl*zx23k bobtl gi nnuf6e elasticities of demand for exports and imports is less than 1. What will be the impact of currency depreciation on the country's trade balanu2x9i d;ktllf4 bgzno *n6b3:ce?

  Select which of the following would not be consistent(x c03way v.*c v7qtzxg 7e:jd with a trade deficit:

  Which of the following represents an inv9s: bsw0pc2; t6dmii iisible export in the balance of payments (BOP) of the USp it20dis;6wib9:m cs ?

  Select from the table below the appropriate transmission mechanism of a k-z,)-ysqz y ghbm,p 55mlu7dcontractionary monetary policy which involves raising interest rates to achieve an exter,gpsy7u-zqdkbh y-mlm5 z, ) 5nal 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 following policy o h(j5i6zv)3gub5 qjhs bjectivesqsh6z5jugjb i53v) h (?

  Which of the following is the most likely response for a country wid ih5*x)tk k5bth a fixed exchange rate experiencing a sharp fall in n 5txkh)ki *bd5et exports?

  A country has a fixed exchange rate with the UK poun)p6b- /*txry+ dqpts -stuo*bc(wam5 d where one unit of its currenc+q)csp*dt(--r b* s wampo 6u/x5 ytbty 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 reaqk tkmhxh;: gt 2ci ;l(zm*7i:son to adopt a floating exchange rate?

  Which of the following policies *,:jtj ql1cr w4:gj idis consistent 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