|Name: _________________________||Period: ___________________|
This test consists of 15 multiple choice questions and 5 short answer questions.
Multiple Choice Questions
1. The crossover point is based on what?
(a) Traffic patterns during work commute.
(b) The wall chart.
(c) The transition from an enjoyable job to a well-paying job.
(d) The decision to earn more money.
2. What should people do with their extra money, once they earn more per month than they spend?
(b) Turn it into an interest-bearing investment.
(c) Work fewer hours per week.
(d) Purchase a long-desired luxury.
3. How do most people define work?
(a) Anything that is not enjoyable.
(b) What they do to make a living.
(c) Life energy spent.
(d) Full-time employment.
4. What should retired people do with their excess monthly income?
(a) Reinvest it or use it to do new projects.
(b) Determing a new crossover point.
(c) Help other family members reach the crossover point.
(d) Use it to buy life energy.
5. What should people do about unusual extra expenses, such as medical bills or birthday parties?
(a) Create an extra chart to track them.
(b) Accept them as a normal part of financial life.
(c) Categorize them as "gazingus pins."
(d) Avoid them whenever possible.
6. 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.
7. What do the authors warn job-hunters to avoid?
(a) Taking a job too closely connected to a hobby or passion.
(b) Spending a lot of money on schemes to find the perfect job.
(c) Taking the first offer that comes along.
(d) Taking a job that requires relocation.
8. If people invest more money each month, what happens to the monthly interest?
(a) The interest must be withdrawn from the account.
(b) The interest increases each month.
(c) The interest decreases each month.
(d) The interest becomes tax-deductible.
9. Where do the authors recommend finding job-hunting advice?
(a) The Internet.
(b) Friends and family.
(c) "What Color Is Your Safety Net?"
(d) "What Color Is Your Parachute?"
10. What is the most important strategy in following Step 7?
(a) Reducing monthly expenses.
(b) Choosing a job with high pay.
(c) Following a passion.
(d) Conserving life energy.
11. The top number on the y-axis should be at least how large?
(a) Three times as large as the participant's expected income.
(b) Twice as large as the participant's expected expenses.
(c) Equal to the participant's expected income.
(d) Twice as large as the participant's expected income.
12. What should be repeatedly placed along the x-axis of the wall chart?
(a) 1 2 3 4 5 6 7 8 9 10 11 12.
(b) J F M A M J J A S O N D.
(c) 1 2 3 4 5 6 7.
(d) M T W T F S S.
13. A person's crossover point is an estimate based on which type of expenses?
(a) Monthly expenses after retirement.
(b) Monthly expenses while they are working.
(c) Food and housing only.
(d) Food, housing, insurance, and health.
14. What should frugal people research before purchasing items?
(a) Value, quality, durability, and multiple use.
(b) Value, quality, and availability.
(c) Color, style, and multiple use.
(d) Popularity, quality, durability, and multiple use.
15. What may reaching the crossover point cause participants to do?
(a) Continue working or choose a new job.
(b) Start a new wall chart.
(c) Increase spending.
(d) Explore other routes to work.
Short Answer Questions
1. What is one difference a frugal person should consider when choosing between two similar vehicles?
2. Paying attention to every thought and deciding whether to act on each thought is crucial to what?
3. People should have enough savings to cover expenses for how long?
4. What is a major advantage of separating employment from passion?
5. The wall chart should accommodate data for how long?
This section contains 624 words
(approx. 3 pages at 300 words per page)