|Name: _________________________||Period: ___________________|
This test consists of 15 multiple choice questions and 5 short answer questions.
Multiple Choice Questions
1. Why should people try not to turn their job into an identity?
(a) Changing careers could cause an identity crisis.
(b) Identity comes from friends and family.
(c) Only volunteerism creates an identy.
(d) So that their lives could be about something different.
2. 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.
3. Where do the authors recommend finding job-hunting advice?
(a) Friends and family.
(b) "What Color Is Your Parachute?"
(c) "What Color Is Your Safety Net?"
(d) The Internet.
4. What should retired people do with their excess monthly income?
(a) Use it to buy life energy.
(b) Determing a new crossover point.
(c) Reinvest it or use it to do new projects.
(d) Help other family members reach the crossover point.
5. The top number on the y-axis should be at least how large?
(a) Twice as large as the participant's expected expenses.
(b) Twice as large as the participant's expected income.
(c) Equal to the participant's expected income.
(d) Three times as large as the participant's expected income.
6. Paying attention to every thought and deciding whether to act on each thought is crucial to what?
(a) 1,000,001 SURE WAYS TO SAVE MONEY.
(b) 1,001 SURE WAYS TO SAVE MONEY.
(c) Life energy.
7. How should people handle unusual extra expenses?
(a) Try to obtain a higher-paying job.
(b) Obtain a designated credit card.
(c) Obtain a home equity loan.
(d) Pay with cash or try to spread the expense out over several months.
8. When can program participants consider retirement?
(a) After working for 20 years in the same field.
(b) When total income exceeds expenses.
(c) At age 65.
(d) After reaching the crossover point.
9. What should people do with their extra money, once they earn more per month than they spend?
(a) Purchase a long-desired luxury.
(c) Turn it into an interest-bearing investment.
(d) Work fewer hours per week.
10. A person's crossover point is an estimate based on which type of expenses?
(a) Monthly expenses after retirement.
(b) Food and housing only.
(c) Monthly expenses while they are working.
(d) Food, housing, insurance, and health.
11. Which of the following is the one and only thing that a job should be about?
(a) Learning valuable information or skills.
(b) Duty or desire to be of service.
(d) Earning money.
12. What encourages family, friends, and neighbors to support the participant's goals in following this program?
(a) Making retirement plans with them.
(b) Placing the wall chart in a public place.
(c) Asking them for a loan.
(d) Making wall charts for them to use.
13. 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 year's income.
(d) The previous month's expenses.
14. How many credit cards should program participants keep?
(a) One for everyday use and one for emergencies.
(c) One, to be used only in emergencies.
(d) One for business use, one for personal use, and one for emergencies.
15. What may reaching the crossover point cause participants to do?
(a) Increase spending.
(b) Explore other routes to work.
(c) Start a new wall chart.
(d) Continue working or choose a new job.
Short Answer Questions
1. What mistake do people often make, when describing their jobs?
2. How does the realization that not all work is paid add life to retirement?
3. Monthly investment income is calculated by determining current excess money each month, then doing what?
4. What is Step 8 of the program?
5. What is the main pitfall of combining work with true passion or enjoyment?
This section contains 718 words
(approx. 3 pages at 300 words per page)