|Name: _________________________||Period: ___________________|
This test consists of 15 multiple choice questions and 5 short answer questions.
Multiple Choice Questions
1. What is the best method of choosing which expenses to reduce or eliminate?
(a) Use answers to the three questions from Chapter 4.
(b) Compare income to expenses on the wall chart.
(c) Add up the plusses and minuses on the monthly chart.
(d) Use answers to the three questions from Chapter 3.
2. The top number on the y-axis should be at least how large?
(a) Three times as large as the participant's expected income.
(b) Equal to the participant's expected income.
(c) Twice as large as the participant's expected income.
(d) Twice as large as the participant's expected expenses.
3. Monthly investment income is calculated by determining current excess money each month, then doing what?
(a) Multiplying it by the current long-term interest rate for U.S. Treasury bonds, then dividing by 12.
(b) Multiplying it by the current long-term interest rate for U.S. Treasury bonds, then multiplying by 12.
(c) Multiplying it by the current short-term interest rate for U.S. Treasury bonds, then dividing by 12.
(d) Multiplying it by the current short-term interest rate for U.S. Treasury bonds, then multiplying by 12.
4. What should people do about unusual extra expenses, such as medical bills or birthday parties?
(a) Create an extra chart to track them.
(b) Avoid them whenever possible.
(c) Categorize them as "gazingus pins."
(d) Accept them as a normal part of financial life.
5. What should participants do if they don't make a living from their passion?
(a) Follow their passion unpaid.
(b) Find a new job.
(c) Abandon their passion until retirement.
(d) Find a new passion.
6. The wall chart's time span is a rough deadline for what?
(b) Finding a life purpose.
(c) Achieving financial independence.
(d) Finding a new career.
7. If people invest more money each month, what happens to the monthly interest?
(a) The interest increases each month.
(b) The interest decreases each month.
(c) The interest must be withdrawn from the account.
(d) The interest becomes tax-deductible.
8. What is the best thing to do with the interest received?
(a) Reinvest it.
(b) Put the money under a mattress for a rainy day.
(c) Purchase rental properties.
(d) Purchase a larger home as a hedge against inflation.
9. What do the authors warn job-hunters to avoid?
(a) Spending a lot of money on schemes to find the perfect job.
(b) Taking the first offer that comes along.
(c) Taking a job too closely connected to a hobby or passion.
(d) Taking a job that requires relocation.
10. The numbers along the y-axis should increase by what increment?
(a) 100 or 200.
(b) 1,000 or 2,000.
(c) 10 or 20.
(d) 1 or 2.
11. If "work" is different from "paid employment," then which of the following is true?
(a) Retirement is the absence of work.
(b) Work includes anything people do to provide a service, including cleaning the house.
(c) Volunteer jobs are not work.
(d) Cleaning is only work when it's done by a paid professional.
12. What mistake do people often make, when describing their jobs?
(a) Saying uncomplimentary things about thier supervisors.
(b) Identifying themselves by their careers.
(c) Revealing annual income.
(d) Playing down their true talents.
13. What should people do as soon as possible?
(a) Get out of debt.
(b) Complete the wall chart.
(c) Find supplemental income.
14. What should people do with their extra money, once they earn more per month than they spend?
(a) Work fewer hours per week.
(c) Turn it into an interest-bearing investment.
(d) Purchase a long-desired luxury.
15. What are 1,001 SURE WAYS TO SAVE MONEY?
(a) A list of strategies to achieve early retirement.
(b) A list of contacts for business networking.
(c) A list of coupon resources.
(d) Participants should look at their own expense lists and make their own list of ways to save.
Short Answer Questions
1. How do most people define work?
2. In the 101 SURE WAYS TO SAVE MONEY section, what do the authors advise people to do in order to save on housing?
3. If people stop buying any extras at all, what are they in danger of doing?
4. What generally happens to monthly expenses, when tracked by program participants?
5. What is one difference a frugal person should consider when choosing between two similar vehicles?
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