16. Which of the following about the linked exchange rate system in Hong Kong is(are) correct? I. One of the reasons for using the linked exchange rate system in Hong Kong is Hong Kong has a relatively small economy. II. When the exchange rate of Hong Kong dollar is too close to the strong side of the allowed exchange rate range the Currency Board will buy Hong Kong dollar and sell US dollar in the market. A. I only: B. II only C. Both I and II- D. Neither I nor II t 17. Which of the following about the Exchange Fund in Hong Kong is(are) correct?" I. The Exchange Fund is managed by the three note issuing banks in Hong Kong. II. Part of the Exchange Fund is the fiscal surplus from the Hong Kong Government. A. I only B. II only C. Both I and II- D. Neither I nor II- t 18. Which of the following is(are) correct? I. Monetary policy usually has a more direct impact on the economy than fiscal policy.' II. Central banks can use monetary policy to increase or decrease money supply.' A. I only B. II only C. Both I and II- D. Neither I nor II- t 19. The interest rate was 2.4% yesterday. Today, the interest rate is 2.45%. Therefore, the interest has risen by from yesterday. A. 0.05 basis point- B. 0.5 basis point- C. 5 basis points D. 50 basis points 20. Which of the following is(are) correct? When a bank sells some of its loans I. the duration of its assets will be shortened- II. the duration of its liabilities will be shortened- A. I only B. II only C. Both I and II- D. Neither I nor