If the U.S. dollar were replaced with a "new dollar" at an exchange rate of 1 new dollar for 5 old dollars, then a loan of $10,000 would become a debt of _____ new dollars.
A) 50,000
B) 10,000
C) 9,995
D) 2,000

Question

Quizplus · Accepted Answer

The loan of $10,000 would be converted to new dollars at the rate of 1 new dollar for 5 old dollars, resulting in a debt of $10,000 / 5 = 2,000 new dollars.

If the US Dollar Were Replaced with a "New Dollar" at an at an Exchange