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This quiz consists of 5 multiple choice and 5 short answer questions through Chapter 3.

Multiple Choice Questions

1. What is the purpose of dividing income and expenses into categories?
(a) To judge whether expenses are worth the life energy spent.
(b) To determine if enough money will be available for retirement.
(c) To determine net worth.
(d) To decide if a career change is warranted.

2. How is net worth determined?
(a) Multiply monthly income by 12.
(b) Estimated current sale price of all items currently owned, plus other assets such as cash and investments.
(c) Add together everything owned, then subtract everything owed.
(d) All items purchased during a lifetime.

3. What should be included in the "miscellaneous" category?
(a) Items under $10.
(b) Nothing.
(c) Items purchased less than once a month.
(d) Gazingus pins.

4. What are bare necessities, as defined in Chapter 1?
(a) Food and water.
(b) All items needed to meet basic physical needs.
(c) A house and car.
(d) Everything owned by an individual.

5. What is the second half of Step 2?
(a) Keeping meticulous track of every cent that comes in or goes out.
(b) Selling unnecessary luxuries.
(c) Looking for a better job.
(d) Saving as much money as possible.

Short Answer Questions

1. Earning, saving, and spending money are part of which perspective?

2. Why should readers not use premade categories from other budget books?

3. What three columns should record-keeping include?

4. What is the intrinsic value of money?

5. What are comforts, as defined in Chapter 1?

(see the answer key)

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