|Name: _________________________||Period: ___________________|
This test consists of 15 multiple choice questions and 5 short answer questions.
Multiple Choice Questions
1. In the 101 SURE WAYS TO SAVE MONEY section, what do the authors advise people to do in order to save on housing?
(a) Consider non-traditional housing.
(b) Buy a larger home as a hedge against inflation.
(c) Avoid non-traditional housing.
(d) Buy and manage multiple rental properties.
2. Why do people feel very free when volunteering?
(a) Because they do not have to be there, and can do things their way.
(b) Volunteering can lead to job offers.
(c) Volunteering requires no skill.
(d) Volunteer work is unpaid.
3. 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.
4. What is the best thing to do with the interest received?
(a) Put the money under a mattress for a rainy day.
(b) Reinvest it.
(c) Purchase rental properties.
(d) Purchase a larger home as a hedge against inflation.
5. A person's crossover point is an estimate based on which type of expenses?
(a) Food and housing only.
(b) Food, housing, insurance, and health.
(c) Monthly expenses while they are working.
(d) Monthly expenses after retirement.
6. What can cause some people to stop buying any extras at all, after starting to use the wall chart?
(a) Desire to change thier life purpose.
(b) Shock at their spending habits.
(c) Shock over actual income.
(d) Running out of room on the wall chart.
7. The wall chart's time span is a rough deadline for what?
(a) Finding a new career.
(b) Achieving financial independence.
(c) Finding a life purpose.
8. What is the main pitfall of combining work with true passion or enjoyment?
(a) Passion doesn't always make up for lack of talent.
(b) Enjoyment goes against the puritan work ethic.
(c) Having to compromise in order to satisfy someone else.
(d) Enjoyable jobs don't command respect.
9. What should a participant plot on their wall chart each month?
(a) Life energy spent.
(b) Income and expenses.
(c) Hours worked.
(d) All purchases.
10. Being financially independent requires what?
(a) Earning life energy.
(b) Having savings and no debt.
(c) Inheriting a large estate.
11. What may reaching the crossover point cause participants to do?
(a) Increase spending.
(b) Start a new wall chart.
(c) Explore other routes to work.
(d) Continue working or choose a new job.
12. The wall chart should accommodate data for how long?
(a) Until retirement.
(b) Seven to ten years.
(c) Five to seven years.
(d) Five to seven months.
13. What are two tips for reducing transportation expenses?
(a) Walking to do local errands and retiring early.
(b) Retiring early and buying a new car.
(c) Buying a new car and learning to do basic auto maintenance.
(d) Walking to do local errands and learning to do basic auto maintenance.
14. When can program participants consider retirement?
(a) After reaching the crossover point.
(b) When total income exceeds expenses.
(c) At age 65.
(d) After working for 20 years in the same field.
15. What should be repeatedly placed along the x-axis of the wall chart?
(a) J F M A M J J A S O N D.
(b) 1 2 3 4 5 6 7 8 9 10 11 12.
(c) 1 2 3 4 5 6 7.
(d) M T W T F S S.
Short Answer Questions
1. What should people do as soon as possible?
2. What should frugal people research before purchasing items?
3. What should people be willing to do?
4. What is the most important strategy in following Step 7?
5. What are some good alternatives to buying what is needed?
This section contains 623 words
(approx. 3 pages at 300 words per page)