If the Canadian dollar were replaced with a "new dollar" at an exchange rate of one new dollar for five 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 in old dollars would be converted to new dollars at the rate of one new dollar for every five old dollars, resulting in a debt of $2,000 new dollars (10,000 / 5 = 2,000).

If the Canadian Dollar Were Replaced with a "New Dollar