Define the term overvalued currencyszpq h*j91*ei .

  

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 currentq/8ub veo(mj. account surplus will have the following consequences except (u/mqbj.evo8

  What will be the impact of a current account deficit on the countr/4aqd tdc:ityi230gyy’s currency undercd:tya4/it d230iq yg a floating 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 help improve the baug;q3w1fpl4 iem5dzm; 2qde/jh f0.hlance 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 n ecqkm08nph*2*lhu 6 tot consistent with the likely effect of an increase in interest rates in Malaysie* cm2 hqu ltnh*k08p6a?

  Which one of the following is not included in th d8z(l,t t5l 1a6xh*rqq yalh4e current account of the balance of payylt6l ,* r45d8 lq1hqztaa x(hments (BOP)?

  Which of the following is an expenditure-switching policy to correct a p(o;: b 2sg z9qjk sdfcpb v;8+j8znk7kersistent current account deficit?s:+js pzd;k 9k;fnkzg2j8(boc v 8qb7

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 aq+2nksw9:x x(qprzu/ pn: b 6pnd the sum of the price elasticities of demand for exports and imports is less than 1. What will be the impact of currency depreciation on the country's trade balance ( 2:s6pqwn uppx rq:kb/9+zxn?

  Select which of the following would not be m:hn9 fva2fdcukuz i (;1j1l2consistent with a trade deficit:

  Which of the following represents an invisible expofk9g 7nse9-gxr08 pp irt in the balance of payments (BOP) of the Usf8ipngg 9x 9e-0p7 krS?

  Select from the table below the a,6a-/(z 8ldu9 :urzmwq mbcxpppropriate transmission mechanism of a contractionary monetary policy which involves raising inubr/ uz(mcw x9-,dq lmzp:68aterest 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 ijliz3 7;d rg /0lerlxn(g/ fhxr*(k7 an achieving which of the following policy objective xrr3l(za07ldhkl ;r(gx*/i7ge /njf s?

  Which of the following is the most likely response for af k6rn/b6 k5wn country with a fixed exchange rate experiencing a sharp fabnk 5 n6kr/6wfll in net exports?

  A country has a fixed exchange rate with the UK pound where one unit of i )iq73d d2xes;m3jukxpr2 5gjts currency is worth £sj;2rdi x 2kgj33xum5d)eq p70.80
£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 floating excha /ja y+x byi6(xb.dhq( uj-v4nnge rate?

  Which of the following policies is consistent with its objec wfht 9r9efr-8xm9zn8tive?

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