Hong Kong was a British territory for approximately 150 years before being handed back to China in 1997. It is now a Special Administrative Region of China. (a) State the currency of China and explain why Hong Kong does not use the currency of China as its currency.

Hong Kong was a British territory for approximately 150 years before being handed back to China in 1997. It is now a Special Administrative Region of China. (a) State the currency of China and explain why Hong Kong does not use the currency of China as its currency.

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter29: Exchange Rates And International Capital Flows

Section: Chapter Questions

Problem 23CTQ: Why would a nation dollarizeâ€”that is, adopt another countrys currency instead of having its own?

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Question

Hong Kong was a British territory for approximately 150 years before being handed back to China in
1997. It is now a Special Administrative Region of China.
(a) State the currency of China and explain why Hong Kong does not use the currency of China as its
currency.

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