Jordan has the following assets and liabilities: Suppose that Jordan wins $100,000 in the lottery. If he uses that money to pay off his mortgage, his wealth would ______; if he puts that money in his checking account, his wealth would ______.
A) increase to $209,000; not change
B) not change; increase to $207,000
C) increase to $209,000; increase to $209,000
D) increase to $207,000; not change

Question

Jordan has the following assets and liabilities:  Suppose that Jordan wins $100,000 in the lottery. If he uses that money to pay off his mortgage, his wealth would ______; if he puts that money in his checking account, his wealth would ______.
A) increase to $209,000; not change 
B) not change; increase to $207,000 
C) increase to $209,000; increase to $209,000 
D) increase to $207,000; not change

Quizplus · Accepted Answer

By reducing credit card debt, Mo is reducing his liabilities. This increases his wealth.

Jordan Has the Following Assets and Liabilities: Suppose That