The Hong Kong Dollar Is Pegged to the U

question 25

Multiple Choice

The Hong Kong dollar is pegged to the U.S. dollar at a rate of 7.8 Hong Kong dollars to 1 U.S. dollar. Suppose the central bank of Hong Kong changes the exchange value to 7.3 Hong Kong dollars to 1 U.S. dollar. Which of the following is most likely to be true in this context?

• A)The Hong Kong dollar has been revalued by 0.5 percent.
• B)The Hong Kong dollar has been devalued by 0.5 percent.
• C)The Hong Kong dollar has been revalued by 6.4 percent.
• D)The Hong Kong dollar has been devalued by 6.2 percent.

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Definitions:

Virtue Ethicist

A philosopher or ethicist who emphasizes virtues, or moral character, as the basis for ethical behavior.

Principles of Duty

Fundamental ethical rules or guidelines that dictate what individuals ought to do, often based on moral obligations.

Ethical Philosophy

A branch of philosophy that involves systematizing, defending, and recommending concepts of right and wrong behavior.

Moral Relativists

Individuals who believe that moral principles are not absolute but vary with social, cultural, or personal circumstances.