Usage of "that" and "it"


A: Is that your hat?
B: Yes, that is.


Or It should be "Yes, it is." If I ask some questions with "that", do I have to answer it with "that" or "it", "that" and "this" are possible, depending on context?


Thank you so much as usual and have a good day.  

edited Jan 09 '13 at 13:43 Hans Contributor

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