|Name: _________________________||Period: ___________________|
This test consists of 15 multiple choice questions and 5 short answer questions.
Multiple Choice Questions
1. How should program participants adjust their medical insurance?
(a) Accept a higher deductible.
(b) Cancel insurance and make healthier lifestyle choices.
(c) Cancel insurance and maintain a medical savings account.
(d) Accept a lower deductible.
2. What is the main pitfall of combining work with true passion or enjoyment?
(a) Having to compromise in order to satisfy someone else.
(b) Enjoyment goes against the puritan work ethic.
(c) Enjoyable jobs don't command respect.
(d) Passion doesn't always make up for lack of talent.
3. Monthly investment income is calculated by determining current excess money each month, then doing what?
(a) Multiplying it by the current short-term interest rate for U.S. Treasury bonds, then multiplying by 12.
(b) Multiplying it by the current long-term interest rate for U.S. Treasury bonds, then multiplying by 12.
(c) Multiplying it by the current short-term interest rate for U.S. Treasury bonds, then dividing by 12.
(d) Multiplying it by the current long-term interest rate for U.S. Treasury bonds, then dividing by 12.
4. What is Step 7?
(a) Increasing life energy.
(b) Maximizing income.
(c) Reducing clutter.
(d) Minimizing debt.
5. What are two tips for reducing transportation expenses?
(a) Walking to do local errands 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) Buying a new car and learning to do basic auto maintenance.
6. What is one difference a frugal person should consider when choosing between two similar vehicles?
(b) Foreign-made vs. American-made.
(c) Available options.
(d) Resale values.
7. What is the recommended size of the wall chart?
(a) From 18 to 22 inches wide, and from 24 to 36 inches tall.
(b) From 18 to 22 inches tall, and from 24 to 36 inches wide.
(c) From 18 to 24 inches tall, and from 22 to 36 inches wide.
(d) From 18 to 24 inches wide, and from 22 to 36 inches tall.
8. What should retired people do with their excess monthly income?
(a) Determing a new crossover point.
(b) Use it to buy life energy.
(c) Help other family members reach the crossover point.
(d) Reinvest it or use it to do new projects.
9. The wall chart's time span is a rough deadline for what?
(b) Finding a life purpose.
(c) Achieving financial independence.
(d) Finding a new career.
10. What should frugal people research before purchasing items?
(a) Color, style, and multiple use.
(b) Value, quality, and availability.
(c) Popularity, quality, durability, and multiple use.
(d) Value, quality, durability, and multiple use.
11. What do the authors warn job-hunters to avoid?
(a) Spending a lot of money on schemes to find the perfect job.
(b) Taking a job too closely connected to a hobby or passion.
(c) Taking the first offer that comes along.
(d) Taking a job that requires relocation.
12. What may reaching the crossover point cause participants to do?
(a) Start a new wall chart.
(b) Continue working or choose a new job.
(c) Increase spending.
(d) Explore other routes to work.
13. Most of the 101 SURE WAYS TO SAVE MONEY have what added benefit?
(a) They are good for the planet.
(b) They improve career options.
(c) They increase hourly wage.
(d) They delay retirement.
14. What should people do with their extra money, once they earn more per month than they spend?
(a) Turn it into an interest-bearing investment.
(b) Work fewer hours per week.
(c) Purchase a long-desired luxury.
15. What generally happens to monthly expenses, when tracked by program participants?
(a) They settle into a certain range.
(b) They gradually decrease.
(c) They gradually increase.
(d) They trend up or down along with income.
Short Answer Questions
1. How should people handle unusual extra expenses?
2. What is the crossover point?
3. Where do the authors recommend finding job-hunting advice?
4. Participants should always remain conscious of what?
5. A person's crossover point is an estimate based on which type of expenses?
This section contains 700 words
(approx. 3 pages at 300 words per page)