|Name: _________________________||Period: ___________________|
This test consists of 15 multiple choice questions and 5 short answer questions.
Multiple Choice Questions
1. What are some good alternatives to buying what is needed?
(a) Borrowing, trading, and sharing.
(b) Trading, sharing, and retiring.
(c) Begging, stealing, and borrowing.
(d) Sharing, trading, and stealing.
2. What should retired people do with their excess monthly income?
(a) Help other family members reach the crossover point.
(b) Use it to buy life energy.
(c) Determing a new crossover point.
(d) Reinvest it or use it to do new projects.
3. What should people be willing to do?
(a) Work for what they want.
(b) Sacrifice income for a job that matches a passion.
(c) Sacrifice family time for more income.
(d) Work more than 40 hours per week.
4. Prestige, status, and power can be reasons for what?
(a) Retaining life energy.
(b) Early retirement.
(c) Keeping up with the neighbors.
(d) Choosing a certain job.
5. What is the crossover point?
(a) When the amount of total income is as high as normal monthly expenses.
(b) When the amount of investment income is lower than normal monthly expenses.
(c) When the amount of investment income is as high as normal monthly expenses.
(d) When the amount of total income is lower than normal monthly expenses.
6. Participants should always remain conscious of what?
(a) Life energy.
(b) Impending retirement.
(c) All the job opportunities around them.
7. What is Step 6?
(a) Planning for retirement.
(b) Creating a wall chart.
(c) Determining net worth.
(d) Minimizing spending.
8. When can program participants consider retirement?
(a) After reaching the crossover point.
(b) When total income exceeds expenses.
(c) After working for 20 years in the same field.
(d) At age 65.
9. What may reaching the crossover point cause participants to do?
(a) Explore other routes to work.
(b) Start a new wall chart.
(c) Increase spending.
(d) Continue working or choose a new job.
10. What are 1,001 SURE WAYS TO SAVE MONEY?
(a) A list of strategies to achieve early retirement.
(b) A list of coupon resources.
(c) Participants should look at their own expense lists and make their own list of ways to save.
(d) A list of contacts for business networking.
11. How should program participants adjust their medical insurance?
(a) Accept a higher deductible.
(b) Cancel insurance and maintain a medical savings account.
(c) Accept a lower deductible.
(d) Cancel insurance and make healthier lifestyle choices.
12. Where should monthly investment income be tracked?
(a) On reports from investment brokers.
(b) On the income and expense charts created in Chapters 2 and 3.
(c) On a new chart.
(d) On the wall chart.
13. The numbers along the y-axis should increase by what increment?
(a) 100 or 200.
(b) 1,000 or 2,000.
(c) 1 or 2.
(d) 10 or 20.
14. The top number on the y-axis should be at least how large?
(a) Twice as large as the participant's expected expenses.
(b) Three times as large as the participant's expected income.
(c) Twice as large as the participant's expected income.
(d) Equal to the participant's expected income.
15. What do the authors describe as "having a high joy-to-stuff ratio?"
(a) Being frugal.
(d) Life energy.
Short Answer Questions
1. What should a participant plot on their wall chart each month?
2. What is the most important strategy in following Step 7?
3. What should people do about unusual extra expenses, such as medical bills or birthday parties?
4. What is Step 8 of the program?
5. In the 101 SURE WAYS TO SAVE MONEY section, what do the authors advise people to do in order to save on housing?
This section contains 592 words
(approx. 2 pages at 300 words per page)