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This test consists of 15 multiple choice questions and 5 short answer questions.

Multiple Choice Questions

1. Why are small, specific categories recommended over traditional, broad categories?
(a) Broad categories cost more life energy.
(b) Smaller categories allow people to determine which purchases bring only temporary happiness.
(c) Specific categories are easier to place on a chart.
(d) Broad categories work only for high-income individuals.

2. What does Question 2 help people to figure out?
(a) Whether income exceeds expenses.
(b) How well they are doing at moving toward their purpose.
(c) How will expenses change after retirement?
(d) Life energy spent.

3. What is the first half of Step 2?
(a) Determine net worth.
(b) Determine real hours worked.
(c) Determine real hourly wage.
(d) Not feeling shame or blame.

4. What is one of the main economic principles most businesses follow?
(a) Going green is good.
(b) Technology is good.
(c) Growth is good.
(d) Debt is good.

5. What might cause readers to feel guilty, after completing Step 1?
(a) Spending too much time with family.
(b) Seeing their credit score.
(c) Seeing how much they owe or how little they have earned.
(d) Feeling less successful than their work colleagues.

6. People strive to buy and earn more than they need to live at the peak of their fulfillment curve due to which perspective of money?
(a) Intrinsic value.
(b) Cultural.
(c) Greed.
(d) Emotional and psychological.

7. What three columns should record-keeping include?
(a) Salary, gifts, and prizes.
(b) Income, expenditures, and hours of life energy spent.
(c) Gross income, life energy spent, and expenses to eliminate.
(d) Necessities, luxuries, and expenses to eliminate.

8. What is the real amount of life energy?
(a) Total energy spent per week.
(b) The real number of hours of life used to make purchases.
(c) Number of hours worked minus number of hours at leisure.
(d) The number of years remaining in an average lifetime.

9. The charts shown in the book for single people and couples are meant to be used how?
(a) As a family budget.
(b) As strict guides.
(c) As inspiration.
(d) As tax records.

10. What are comforts, as defined in Chapter 1?
(a) Things people really enjoy.
(b) Employment and financial security.
(c) Emotional support.
(d) Pillows and mattresses.

11. What do the authors suggest that people divide their spending into?
(a) Categories defined in Chapter 3.
(b) Three columns.
(c) Categories that make sense for them.
(d) Categories determined by life energy.

12. Which of the following does the emotional and psychological perspective of money include?
(a) Using credit cards.
(b) Personal responsibility.
(c) The tendency to spend quickly or cautiously.
(d) Fear of unemployment.

13. Question 1 is answered with a plus sign under what circumstance?
(a) If the expenditure was a necessity.
(b) If income is greater than expenses for the month.
(c) If the purchase was work-related.
(d) If the expenditure was worth the life energy spent.

14. Why should clothing be broken down into smaller categories, such as informal, work, sports, etc.?
(a) To allow for a greater volume of work-related purchases.
(b) To encourage donations of older clothes to charity.
(c) To encourage participation in sports.
(d) To avoid purchases that are worn only once.

15. Why are expensive convenience foods considered to be a work expense?
(a) Factories employ people to produce convenience foods.
(b) People are too tired after work to make dinner.
(c) Unemployed people cannot afford convenience foods.
(d) Convenience foods promote life energy.

Short Answer Questions

1. What is Step 1, Part 2 of the program?

2. What is the intrinsic value of money?

3. What should participants do if the answer to Question 2 is "no" for a particular item?

4. What must a person do to become financially independent?

5. On average, what do Americans have less of than ever before?

(see the answer keys)

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