Question 2 (20 marks) + A. Suppose Mr. Lee is the customer of HSBC, and Ms. Cheung is the customer of Standard Chartered Bank (SCB). Mr. Lee receives two SCB cheques, one with the amount of $120,000 and one with $80,000, from his customers. He deposits the cheques into his HSBC account on Monday. Ms. Cheung receives 2 HSBC cheques, one with the amount of $50,000 and one with $90,000, from her friends. She deposits the cheques in her SCB account on the same day as Mr. Lee (Monday). Explain when and how the above cheques would be settled between HSBC and SCB. (6 marks) t B. Hong Kong dollar (HKD) is linked to US dollar (USD) in the range of exchange rate HKD7.75 to HKD7.85 per USD. + Suppose the current exchange rate is HKD7.76 per USD. Recently, many foreign investors are bringing foreign currency to Hong Kong to buy Hong Kong stocks. Explain what would possibly happen to the exchange rate of HKD and USD, and how the Currency Board System will work to stabilize the exchange rate of HKD. (6 marks) le