|Name: _________________________||Period: ___________________|
This test consists of 15 multiple choice questions and 5 short answer questions.
Multiple Choice Questions
1. Why are small, specific categories recommended over traditional, broad categories?
(a) Broad categories cost more life energy.
(b) Specific categories are easier to place on a chart.
(c) Broad categories work only for high-income individuals.
(d) Smaller categories allow people to determine which purchases bring only temporary happiness.
2. What should the amount started with at the beginning of the month, plus total income, minus total expenses equal?
(a) Gross income.
(b) Net worth.
(c) The amount of money they have left at the end of the month.
(d) The amount shown on a bank statement.
3. What is a possible advantage of switching to a lower-paying job?
(a) More time available for continuing education.
(b) Less money available to spend.
(c) Less life energy spent equals a longer lifespan.
(d) Ultimately earning more for each hour of life energy spent.
4. Why do many people give up time with family, working on hobbies, and fulfilling dreams?
(a) They fear success.
(b) They are insecure.
(c) They are too busy working.
(d) They are lazy.
5. What is the state of having enough to spend in order to purchase just enough?
(a) The middle of the success spectrum.
(b) The peak of the fulfillment curve.
(c) The peak of the success spectrum.
(d) The bottom of the fulfillment curve.
6. What must people do in order to make Step 3 work?
(a) Work more hours.
(b) Be as truthful as possible.
(c) Reduce spending.
(d) Work fewer hours.
7. Where do values come from?
(a) Working harder.
(c) Bargain hunting.
(d) Saving money.
8. What is the purpose of dividing income and expenses into categories?
(a) To judge whether expenses are worth the life energy spent.
(b) To determine if enough money will be available for retirement.
(c) To determine net worth.
(d) To decide if a career change is warranted.
9. What is Question 3?
(a) Is income greater than expenses for the month?
(b) How might this expenditure change if I did not have to work for a living?
(c) What are my dreams?
(d) In how many years will I be able to retire?
10. What is budgeting similar to?
(b) Filing taxes.
(c) Reducing income.
11. People should spend only until they are fulfilled, just as they should do what?
(a) Drink in moderation.
(b) Eat only until they are full.
(c) Gamble within a preset limit.
(d) Work only until they feel fulfilled.
12. What are bare necessities, as defined in Chapter 1?
(a) All items needed to meet basic physical needs.
(b) Food and water.
(c) A house and car.
(d) Everything owned by an individual.
13. What is the key to good spending habits?
(a) Full consciousness.
(b) Full contentment.
(c) Full complacency.
(d) Full compulsion.
14. What does the physical perspective of money include?
(a) Personal responsibility and transformation.
(b) Using PIN numbers.
(c) Balancing a checkbook.
15. Which perspective is the notion of "keeping up with the neighbors" part of?
(b) Personal responsibility and transformation.
(c) Emotional and psychological.
(d) Step 2.
Short Answer Questions
1. What makes the difference between a good life and a great life?
2. Question 1 is answered with a plus sign under what circumstance?
3. What are dreams good clues to?
4. What broad category are alcohol and tobacco subcategories of?
5. For Question 3 under what circumstance would one enter a minus sign on the chart?
This section contains 607 words
(approx. 3 pages at 300 words per page)