1. HK linked exchange rate
In fact, trading of HK$ relates very much to the confidence of local people & investors since if they worry about the future and withdraw capital from HK, then the government will have to spend heavily from its foreign exchange reserves to buy up HK$ in the market to support the rate. ... PROS Cushion an economy against shocks The link has proved its resilience against waves of shocks: 1987 stock market shock, the June 4 crackdown in 1989, 1990 Gulf War, the collapse of BCCI in 1992, Mexican currency crisis and the most severe one, the currency crisis in Asia in mid and late 1997. ... Ho...
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- Grade Level: High School