|Name: _________________________||Period: ___________________|
This test consists of 5 multiple choice questions and 5 short answer questions.
Multiple Choice Questions
1. A line should be drawn connecting the current month's income to what?
(a) The previous month's expenses.
(b) The previous year's income.
(c) The current month's expenses.
(d) The previous month's income.
2. 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.
(c) Purchase a long-desired luxury.
(d) Work fewer hours per week.
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 dividing by 12.
(b) Multiplying it by the current long-term interest rate for U.S. Treasury bonds, then dividing by 12.
(c) Multiplying it by the current long-term interest rate for U.S. Treasury bonds, then multiplying by 12.
(d) Multiplying it by the current short-term interest rate for U.S. Treasury bonds, then multiplying by 12.
4. The numbers along the y-axis should increase by what increment?
(a) 1 or 2.
(b) 10 or 20.
(c) 1,000 or 2,000.
(d) 100 or 200.
5. What is one difference a frugal person should consider when choosing between two similar vehicles?
(b) Foreign-made vs. American-made.
(c) Resale values.
(d) Available options.
Short Answer Questions
1. What is Step 7?
2. What should people be willing to do?
3. What may reaching the crossover point cause participants to do?
4. What is the best method of choosing which expenses to reduce or eliminate?
5. The wall chart's time span is a rough deadline for what?
This section contains 321 words
(approx. 2 pages at 300 words per page)