|Name: _________________________||Period: ___________________|
This test consists of 15 multiple choice questions and 5 short answer questions.
Multiple Choice Questions
1. Where do the authors recommend finding job-hunting advice?
(a) Friends and family.
(b) "What Color Is Your Parachute?"
(c) The Internet.
(d) "What Color Is Your Safety Net?"
2. The wall chart should accommodate data for how long?
(a) Seven to ten years.
(b) Until retirement.
(c) Five to seven years.
(d) Five to seven months.
3. What is one difference a frugal person should consider when choosing between two similar vehicles?
(b) Foreign-made vs. American-made.
(c) Available options.
(d) Resale values.
4. Prestige, status, and power can be reasons for what?
(a) Keeping up with the neighbors.
(b) Choosing a certain job.
(c) Retaining life energy.
(d) Early retirement.
5. 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 multiplying by 12.
(b) Multiplying it by the current long-term interest rate for U.S. Treasury bonds, then dividing 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.
6. What are some good alternatives to buying what is needed?
(a) Borrowing, trading, and sharing.
(b) Sharing, trading, and stealing.
(c) Begging, stealing, and borrowing.
(d) Trading, sharing, and retiring.
7. How does eating a proper diet make sense financially?
(a) Eating three meals a day saves money.
(b) Losing weight means no money spent on gym memberships.
(c) Eating good foods can prevent illnesses and reduce medical costs.
(d) Eating less saves money.
8. If people earn more than the minimum needed to pay bills, what should they do with the extra money?
(a) Donate to charity.
(b) Save it to use later in the program for investing.
(c) Splurge on a luxury.
(d) Purchase rental properties.
9. Taking care of possessions and avoiding shopping are part of which list?
(a) 10 SURE WAYS TO SAVE MONEY.
(b) 1,001 SURE WAYS TO SAVE MONEY.
(c) 101 SURE WAYS TO SAVE MONEY.
(d) 3 SURE WAYS TO SAVE MONEY.
10. What are two tips for reducing transportation expenses?
(a) Buying a new car and learning to do basic auto maintenance.
(b) Walking to do local errands and retiring early.
(c) Walking to do local errands and learning to do basic auto maintenance.
(d) Retiring early and buying a new car.
11. What should participants do if they don't make a living from their passion?
(a) Find a new job.
(b) Follow their passion unpaid.
(c) Find a new passion.
(d) Abandon their passion until retirement.
12. How should program participants adjust their medical insurance?
(a) Accept a higher deductible.
(b) Accept a lower deductible.
(c) Cancel insurance and maintain a medical savings account.
(d) Cancel insurance and make healthier lifestyle choices.
13. What should retired people do with their excess monthly income?
(a) Use it to buy life energy.
(b) Reinvest it or use it to do new projects.
(c) Help other family members reach the crossover point.
(d) Determing a new crossover point.
14. Participants will end up making more money than they spend if they do what?
(a) Retire early.
(b) Maximize income and minimize expenses.
(c) Conserve life energy.
(d) Follow the philosophy of "no shame, no blame."
15. What should people be willing to do?
(a) Sacrifice income for a job that matches a passion.
(b) Work for what they want.
(c) Work more than 40 hours per week.
(d) Sacrifice family time for more income.
Short Answer Questions
1. What is the meaning of the Spanish word, "aprovechar?"
2. How should investment income be tracked?
3. Paying attention to every thought and deciding whether to act on each thought is crucial to what?
4. The top number on the y-axis should be at least how large?
5. What is the recommended size of the wall chart?
This section contains 690 words
(approx. 3 pages at 300 words per page)