|Name: _________________________||Period: ___________________|
This test consists of 15 multiple choice questions and 5 short answer questions.
Multiple Choice Questions
1. What usually happens after a person retires from their job?
(a) Expenses go up.
(b) Expenses go down.
(c) Expenses and income stay about the same.
(d) Income goes up.
2. What should participants do if they don't make a living from their passion?
(a) Follow their passion unpaid.
(b) Find a new passion.
(c) Abandon their passion until retirement.
(d) Find a new job.
3. What do the authors warn job-hunters to avoid?
(a) Taking a job too closely connected to a hobby or passion.
(b) Taking a job that requires relocation.
(c) Spending a lot of money on schemes to find the perfect job.
(d) Taking the first offer that comes along.
4. Where should monthly investment income be tracked?
(a) On the income and expense charts created in Chapters 2 and 3.
(b) On a new chart.
(c) On reports from investment brokers.
(d) On the wall chart.
5. How do most people define work?
(a) What they do to make a living.
(b) Life energy spent.
(c) Full-time employment.
(d) Anything that is not enjoyable.
6. How does eating a proper diet make sense financially?
(a) Eating three meals a day saves money.
(b) Eating good foods can prevent illnesses and reduce medical costs.
(c) Losing weight means no money spent on gym memberships.
(d) Eating less saves money.
7. The crossover point is based on what?
(a) The decision to earn more money.
(b) The wall chart.
(c) Traffic patterns during work commute.
(d) The transition from an enjoyable job to a well-paying job.
8. What are some good alternatives to buying what is needed?
(a) Sharing, trading, and stealing.
(b) Trading, sharing, and retiring.
(c) Borrowing, trading, and sharing.
(d) Begging, stealing, and borrowing.
9. When can program participants consider retirement?
(a) At age 65.
(b) After reaching the crossover point.
(c) When total income exceeds expenses.
(d) After working for 20 years in the same field.
10. What should people do as soon as possible?
(a) Get out of debt.
(b) Complete the wall chart.
(c) Find supplemental income.
11. What is the best thing to do with the interest received?
(a) Put the money under a mattress for a rainy day.
(b) Purchase rental properties.
(c) Purchase a larger home as a hedge against inflation.
(d) Reinvest it.
12. What is Step 6?
(a) Determining net worth.
(b) Planning for retirement.
(c) Creating a wall chart.
(d) Minimizing spending.
13. Being financially independent requires what?
(a) Earning life energy.
(b) Inheriting a large estate.
(d) Having savings and no debt.
14. What is the recommended size of the wall chart?
(a) From 18 to 24 inches tall, and from 22 to 36 inches wide.
(b) From 18 to 22 inches wide, and from 24 to 36 inches tall.
(c) From 18 to 24 inches wide, and from 22 to 36 inches tall.
(d) From 18 to 22 inches tall, and from 24 to 36 inches wide.
15. What is Step 8 of the program?
(b) Track investment income.
(c) Further reduce monthly expenses.
(d) Estimate when the crossover point will take place.
Short Answer Questions
1. Which of the following is the one and only thing that a job should be about?
2. People should have enough savings to cover expenses for how long?
3. What is one advantage of estimating the likely timing of the crossover point?
4. How should program participants adjust their medical insurance?
5. What is the most important strategy in following Step 7?
This section contains 580 words
(approx. 2 pages at 300 words per page)