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

question 69

Multiple Choice

If the U.S. dollar were replaced with a "new dollar" at an exchange rate of 1 new dollar for 8 old dollars, then a mortgage of $100,000 would become a debt of _____ new dollars.

• A) 12,500
• B) 99,992
• C) 100,000
• D) 800,000

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Definitions:

Non-necessary Item

A product or service considered not essential for basic living and daily function.

Coat

An outer garment worn outdoors, providing protection from the weather or for fashion purposes; not related to specific legal or financial terminology.

Agent of Necessity

A person who is appointed to act on behalf of another in situations of urgent necessity, without prior authorization from the principal.

Extravagance

The act or habit of spending more money than is necessary or wise; often associated with lavish or luxurious expenditure.