|Name: _________________________||Period: ___________________|
This test consists of 15 multiple choice questions and 5 short answer questions.
Multiple Choice Questions
1. What percentage of useful life objects could people add if they were not so anxious to replace them?
(a) Twenty to fifty percent.
(b) Ten percent.
(c) Fifty to eighty percent.
(d) One hundred percent.
2. What should people do with their extra money, once they earn more per month than they spend?
(b) Purchase a long-desired luxury.
(c) Turn it into an interest-bearing investment.
(d) Work fewer hours per week.
3. How do most people define work?
(a) Life energy spent.
(b) Full-time employment.
(c) What they do to make a living.
(d) Anything that is not enjoyable.
4. What do the authors warn job-hunters to avoid?
(a) Taking a job too closely connected to a hobby or passion.
(b) Taking the first offer that comes along.
(c) Taking a job that requires relocation.
(d) Spending a lot of money on schemes to find the perfect job.
5. What should frugal people research before purchasing items?
(a) Popularity, quality, durability, and multiple use.
(b) Color, style, and multiple use.
(c) Value, quality, durability, and multiple use.
(d) Value, quality, and availability.
6. 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.
7. What is the best thing to do with the interest received?
(a) Purchase rental properties.
(b) Purchase a larger home as a hedge against inflation.
(c) Reinvest it.
(d) Put the money under a mattress for a rainy day.
8. What encourages family, friends, and neighbors to support the participant's goals in following this program?
(a) Asking them for a loan.
(b) Making wall charts for them to use.
(c) Making retirement plans with them.
(d) Placing the wall chart in a public place.
9. What is one difference a frugal person should consider when choosing between two similar vehicles?
(a) Foreign-made vs. American-made.
(c) Resale values.
(d) Available options.
10. What is a major advantage of separating employment from passion?
(a) Passion won't be used as a substitute for experience.
(b) A greater variety of employment options becomes available.
(c) It is better to remove emotion from gainful employment.
(d) Jobs that do not inspire passion usually pay more.
11. The crossover point is based on what?
(a) Traffic patterns during work commute.
(b) The decision to earn more money.
(c) The transition from an enjoyable job to a well-paying job.
(d) The wall chart.
12. What is the main purpose of the wall chart?
(a) To define values and purpose.
(b) To replace the monthly chart created previously.
(c) Keep finances on the person's mind, to help them make more conscious choices when spending money.
(d) To define commitment to the program.
13. How does the realization that not all work is paid add life to retirement?
(a) People who do not work after retirement have fewer health problems.
(b) Retired people know they can still be useful.
(c) Retired people are happy because they no longer work.
(d) People who do not work after retirement live longer.
14. 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.
15. A line should be drawn connecting the current month's income to what?
(a) The previous year's income.
(b) The previous month's expenses.
(c) The current month's expenses.
(d) The previous month's income.
Short Answer Questions
1. How does eating a proper diet make sense financially?
2. What are two tips for reducing transportation expenses?
3. How should program participants adjust their medical insurance?
4. In the 101 SURE WAYS TO SAVE MONEY section, what do the authors advise people to do in order to save on housing?
5. What is the meaning of the Spanish word, "aprovechar?"
This section contains 713 words
(approx. 3 pages at 300 words per page)