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This quiz consists of 5 multiple choice and 5 short answer questions through Chapter 3.

Multiple Choice Questions

1. What do the authors suggest that people divide their spending into?
(a) Three columns.
(b) Categories that make sense for them.
(c) Categories defined in Chapter 3.
(d) Categories determined by life energy.

2. Why are expensive convenience foods considered to be a work expense?
(a) Factories employ people to produce convenience foods.
(b) People are too tired after work to make dinner.
(c) Unemployed people cannot afford convenience foods.
(d) Convenience foods promote life energy.

3. Attitude toward buying groceries is part of which perspective of money?
(a) Emotional and psychological.
(b) Physical.
(c) Cultural.
(d) Life energy.

4. Why are vacations considered to be a work expense?
(a) Only employed individuals can afford vacations.
(b) Most employees take laptops or cell phones on vacation.
(c) They are required by law.
(d) They are necessary to relieve work-related stress.

5. How is net worth determined?
(a) Multiply monthly income by 12.
(b) Add together everything owned, then subtract everything owed.
(c) All items purchased during a lifetime.
(d) Estimated current sale price of all items currently owned, plus other assets such as cash and investments.

Short Answer Questions

1. Most Americans divide their discretionary time equally between what two activities?

2. What broad category are alcohol and tobacco subcategories of?

3. What three columns should record-keeping include?

4. What must a person do to become financially independent?

5. Under which category does money paid to employ servants and service workers fall?

(see the answer key)

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