|Name: _________________________||Period: ___________________|
This test consists of 15 multiple choice questions and 5 short answer questions.
Multiple Choice Questions
1. How many credit cards should program participants keep?
(b) One, to be used only in emergencies.
(c) One for everyday use and one for emergencies.
(d) One for business use, one for personal use, and one for emergencies.
2. What should people do as soon as possible?
(b) Get out of debt.
(c) Find supplemental income.
(d) Complete the wall chart.
3. What should a participant plot on their wall chart each month?
(a) Hours worked.
(b) All purchases.
(c) Life energy spent.
(d) Income and expenses.
4. What do the authors describe as "having a high joy-to-stuff ratio?"
(a) Being frugal.
(c) Life energy.
5. The wall chart should accommodate data for how long?
(a) Five to seven months.
(b) Seven to ten years.
(c) Five to seven years.
(d) Until retirement.
6. What encourages family, friends, and neighbors to support the participant's goals in following this program?
(a) Placing the wall chart in a public place.
(b) Making retirement plans with them.
(c) Making wall charts for them to use.
(d) Asking them for a loan.
7. What percentage of useful life objects could people add if they were not so anxious to replace them?
(a) One hundred percent.
(b) Fifty to eighty percent.
(c) Twenty to fifty percent.
(d) Ten percent.
8. Statistically, how many Americans are overweight?
9. Taking care of possessions and avoiding shopping are part of which list?
(a) 1,001 SURE WAYS TO SAVE MONEY.
(b) 3 SURE WAYS TO SAVE MONEY.
(c) 10 SURE WAYS TO SAVE MONEY.
(d) 101 SURE WAYS TO SAVE MONEY.
10. What is Step 7?
(a) Increasing life energy.
(b) Maximizing income.
(c) Reducing clutter.
(d) Minimizing debt.
11. A line should be drawn connecting the current month's income to what?
(a) The previous month's income.
(b) The current month's expenses.
(c) The previous month's expenses.
(d) The previous year's income.
12. What should retired people do with their excess monthly income?
(a) Help other family members reach the crossover point.
(b) Reinvest it or use it to do new projects.
(c) Determing a new crossover point.
(d) Use it to buy life energy.
13. How should investment income be tracked?
(a) Combined with monthly expenses.
(b) Subtracted from monthly expenses.
(c) Separately from other income.
(d) Combined with other income.
14. Where do the authors recommend finding job-hunting advice?
(a) The Internet.
(b) Friends and family.
(c) "What Color Is Your Parachute?"
(d) "What Color Is Your Safety Net?"
15. What is the best method of choosing which expenses to reduce or eliminate?
(a) Add up the plusses and minuses on the monthly chart.
(b) Compare income to expenses on the wall chart.
(c) Use answers to the three questions from Chapter 3.
(d) Use answers to the three questions from Chapter 4.
Short Answer Questions
1. What can cause some people to stop buying any extras at all, after starting to use the wall chart?
2. What should frugal people research before purchasing items?
3. What is the most important strategy in following Step 7?
4. What are some good alternatives to buying what is needed?
5. What is the best thing to do with the interest received?
This section contains 557 words
(approx. 2 pages at 300 words per page)