|Name: _________________________||Period: ___________________|
This test consists of 15 multiple choice questions and 5 short answer questions.
Multiple Choice Questions
1. What encourages family, friends, and neighbors to support the participant's goals in following this program?
(a) Asking them for a loan.
(b) Making retirement plans with them.
(c) Placing the wall chart in a public place.
(d) Making wall charts for them to use.
2. What do the authors warn job-hunters to avoid?
(a) Taking a job that requires relocation.
(b) Taking the first offer that comes along.
(c) Taking a job too closely connected to a hobby or passion.
(d) Spending a lot of money on schemes to find the perfect job.
3. What are two tips for reducing transportation expenses?
(a) Buying a new car and learning to do basic auto maintenance.
(b) Retiring early and buying a new car.
(c) Walking to do local errands and retiring early.
(d) Walking to do local errands and learning to do basic auto maintenance.
4. What is the most important strategy in following Step 7?
(a) Reducing monthly expenses.
(b) Following a passion.
(c) Choosing a job with high pay.
(d) Conserving life energy.
5. What should people do as soon as possible?
(a) Complete the wall chart.
(b) Get out of debt.
(d) Find supplemental income.
6. What should retired people do with their excess monthly income?
(a) Determing a new crossover point.
(b) Reinvest it or use it to do new projects.
(c) Help other family members reach the crossover point.
(d) Use it to buy life energy.
7. A line should be drawn connecting the current month's income to what?
(a) The previous month's expenses.
(b) The current month's expenses.
(c) The previous year's income.
(d) The previous month's income.
8. If people earn more than the minimum needed to pay bills, what should they do with the extra money?
(a) Purchase rental properties.
(b) Save it to use later in the program for investing.
(c) Donate to charity.
(d) Splurge on a luxury.
9. What should participants do if they don't make a living from their passion?
(a) Abandon their passion until retirement.
(b) Find a new passion.
(c) Follow their passion unpaid.
(d) Find a new job.
10. If people invest more money each month, what happens to the monthly interest?
(a) The interest increases each month.
(b) The interest decreases each month.
(c) The interest must be withdrawn from the account.
(d) The interest becomes tax-deductible.
11. What is one advantage of estimating the likely timing of the crossover point?
(a) People may become more eager about going to work and doing a good job.
(b) People spend less.
(c) People retire early.
(d) People tend to leave their current job for a more enjoyable one.
12. What is the best thing to do with the interest received?
(a) Reinvest it.
(b) Put the money under a mattress for a rainy day.
(c) Purchase rental properties.
(d) Purchase a larger home as a hedge against inflation.
13. Taking care of possessions and avoiding shopping are part of which list?
(a) 101 SURE WAYS TO SAVE MONEY.
(b) 1,001 SURE WAYS TO SAVE MONEY.
(c) 3 SURE WAYS TO SAVE MONEY.
(d) 10 SURE WAYS TO SAVE MONEY.
14. How many credit cards should program participants keep?
(a) One, to be used only in emergencies.
(b) One for business use, one for personal use, and one for emergencies.
(d) One for everyday use and one for emergencies.
15. How does the realization that not all work is paid add life to retirement?
(a) People who do not work after retirement live longer.
(b) Retired people are happy because they no longer work.
(c) People who do not work after retirement have fewer health problems.
(d) Retired people know they can still be useful.
Short Answer Questions
1. How should people handle unusual extra expenses?
2. The wall chart's time span is a rough deadline for what?
3. What generally happens to monthly expenses, when tracked by program participants?
4. What should frugal people research before purchasing items?
5. Where do the authors recommend finding job-hunting advice?
This section contains 686 words
(approx. 3 pages at 300 words per page)