Hong Kong provides an example of a country that has maintained a currency board.The purpose of its currency board is to
A) maintain a system of freely floating exchange rates.
B) maintain an especially strong commitment to a fixed exchange rate.
C) to totally replace the currency of Hong Kong with the U.S. dollar.
D) to totally replace the currency of Hong Kong with the euro.

Question

Quizplus · Accepted Answer

Hong Kong's currency board is designed to maintain a fixed exchange rate with the U.S. dollar at a rate of around 7.8 Hong Kong dollars to one U.S. dollar. This represents a strong commitment to the fixed exchange rate system.

Hong Kong Provides an Example of a Country That Has