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The Honk Kong dollar is pegged to the US dollar at 7.75 HKD to an USD. If the interest rate in the US is 2%,

The Honk Kong dollar is pegged to the US dollar at 7.75 HKD to an USD. If the interest rate in the US is 2%, the interest rate Hong Kong will be:

less than 2%.

equal to 2%.

greater than 2%.

We cannot say anything about the interest rate in HK from this information.

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