2(a) Peter just found a new job and now he has $1000 for making investment for every month. Because of the pandemic, he would like to invest in the medical product manufacturing stocks in both Japan and the US in each month. Suggest how he can do that and suggest how he can be benefitted by this approach. Elaborate your answers in detail by stating how it enables him to do four things which normally cannot be done without adopting this approach. (5 marks)

2(b) In order to cope with the unemployment situation in the US due to the pandemic, the Federal Reserve has carried out expansionary monetary policies, which results in a change of the interest rate in the US. However, given that the housing prices in Hong Kong are already extremely high, reducing the interest rate in Hong Kong may pose the risk of an increase in the housing prices. Therefore, is it possible for the Hong Kong Monetary Authority to act contrary to the Federal Reserve by increasing the interest rate in the long run? What are the consequences? Explain your answer in details. (12 marks)