(a)Suppose that the exchange rate of HK dollar against USD was in the equilibrium under the floating exchange rate system. If there is a rise in interest rate in the US by 2%, and the US government is imposing a quota on HKs export, how will this affect the exchange rate of HK dollar against USD?

(b).You have decided to lease a car for 36 months with the first monthly payment due in one month. The price of the car is $40,000 and at the end of the lease you can pay $20,000 with your last lease payment to keep the car, or you can simply turn it in. Given that the lease has annual interest rate of 6%, compounded monthly, what will the monthly lease payments be?