|Name: _________________________||Period: ___________________|
This test consists of 15 multiple choice questions and 5 short answer questions.
Multiple Choice Questions
1. How should people handle unusual extra expenses?
(a) Try to obtain a higher-paying job.
(b) Obtain a designated credit card.
(c) Pay with cash or try to spread the expense out over several months.
(d) Obtain a home equity loan.
2. Paying attention to every thought and deciding whether to act on each thought is crucial to what?
(b) 1,001 SURE WAYS TO SAVE MONEY.
(c) 1,000,001 SURE WAYS TO SAVE MONEY.
(d) Life energy.
3. What is the true definition of work?
(a) Life energy spent.
(b) It varies depending on who is defining it.
(c) Full-time employment.
(d) Anything that is not enjoyable.
4. What is a major advantage of separating employment from passion?
(a) Jobs that do not inspire passion usually pay more.
(b) Passion won't be used as a substitute for experience.
(c) It is better to remove emotion from gainful employment.
(d) A greater variety of employment options becomes available.
5. What usually happens after a person retires from their job?
(a) Expenses go up.
(b) Income goes up.
(c) Expenses and income stay about the same.
(d) Expenses go down.
6. Where should monthly investment income be tracked?
(a) On the income and expense charts created in Chapters 2 and 3.
(b) On the wall chart.
(c) On reports from investment brokers.
(d) On a new chart.
7. A line should be drawn connecting the current month's income to what?
(a) The current month's expenses.
(b) The previous year's income.
(c) The previous month's expenses.
(d) The previous month's income.
8. Participants will end up making more money than they spend if they do what?
(a) Retire early.
(b) Conserve life energy.
(c) Maximize income and minimize expenses.
(d) Follow the philosophy of "no shame, no blame."
9. What is the crossover point?
(a) When the amount of total income is lower than normal monthly expenses.
(b) When the amount of investment income is as high as normal monthly expenses.
(c) When the amount of investment income is lower than normal monthly expenses.
(d) When the amount of total income is as high as normal monthly expenses.
10. How should program participants adjust their medical insurance?
(a) Accept a lower deductible.
(b) Accept a higher deductible.
(c) Cancel insurance and maintain a medical savings account.
(d) Cancel insurance and make healthier lifestyle choices.
11. What is one difference a frugal person should consider when choosing between two similar vehicles?
(a) Resale values.
(b) Foreign-made vs. American-made.
(d) Available options.
12. How many credit cards should program participants keep?
(a) 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.
13. What do the authors describe as "having a high joy-to-stuff ratio?"
(c) Being frugal.
(d) Life energy.
14. Prestige, status, and power can be reasons for what?
(a) Choosing a certain job.
(b) Early retirement.
(c) Keeping up with the neighbors.
(d) Retaining life energy.
15. What should frugal people research before purchasing items?
(a) Value, quality, and availability.
(b) Color, style, and multiple use.
(c) Popularity, quality, durability, and multiple use.
(d) Value, quality, durability, and multiple use.
Short Answer Questions
1. When can program participants consider retirement?
2. What do the authors warn job-hunters to avoid?
3. What are two tips for reducing transportation expenses?
4. What is the most important strategy in following Step 7?
5. How does eating a proper diet make sense financially?
This section contains 645 words
(approx. 3 pages at 300 words per page)