Define the term overvalued curr/2o p.yib 1e 3ah)ujibency.

  

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 eb:l 2u ns:oxmbb 8q14account surplus will have the following consequxnsmlob:ub 2 : 4qb8e1ences except

  What will be the impact of a sn4 )cjnj4e b/current account deficit on the country’s currency under an sc4e /n4jj)b 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 balance of trz9rxv3t66kqfi hb 94z ade (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 l1(t n,e95vw; ldetg13bt osjstatements is not consistent with the likely effect of an increase in ile3,d1 t t;j gtlw9s 5o(vn1benterest rates in Malaysia?

  Which one of the following is not included in the current aex ,(3p qm:xgbccount of the balance o:(bxm qe, gp3xf payments (BOP)?

  Which of the following iyimt2;re 9 16 f0vmk1vnejj) cs an expenditure-switching policy to correct a persistent currentm12j;6nm e109evjrtk i) cfyv 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 defm yry5wb:e1d4; wv gj+icit and the sum of the price elasticities of demand for exports 15bw:ymwdge;r4jv+ yand imports is less than 1. What will be the impact of currency depreciation on the country's trade balance?

  Select which of the following would novp oyvw3yr7tvxuovt + .+a )y7pz4.a)t be consistent with a trade deficit:

  Which of the following represents an invisible0pnv-8rl( /bawm*bs n c)m-yn export in the balance of payments (BOP) of 0 a-8 cr-wmb svnl*(n/pmnyb)the US?

  Select from the table below the appropriate transmission hbgiacdp8(3 h :;6whamechanism of a contractionary monetary policy which involves ra w; (ac g3:d6bih8phhaising 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 which of426n1 lbk vm .rr/yodq the following policy objec2.n olydm/ b41rqvk 6rtives?

  Which of the following is the most likely response for a country with a fixed m/fhe)4 i pyx5q)-q aiexchange rate experiencing a sharp fallp -yi)x5q mfe4a)/hiq in net exports?

  A country has a fixed exchange ra+72psc6 :y 8iqknc dqcte with the UK pound where one unit of its currency is wq s ci2+nq:y c6d8cp7korth £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 floatint88ks-j ktey9 g exchange rate?

  Which of the followind nmt kydzh.3wo63 4ab1vuy3)g policies is 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