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

Multiple Choice Questions

1. What is the term for the unnecessary things, activities, and noise in our lives?
(a) Security.
(b) Luxuries.
(c) Comforts.
(d) Clutter.

2. What causes emptiness?
(a) Losing a job.
(b) After spending time with family, the temporary happiness fades.
(c) Spending too much time on leisure activities.
(d) After buying a new item, the temporary happiness fades.

3. How often should people total their income and expenses?
(a) Once a month.
(b) Whenever a paycheck is deposited.
(c) Daily.
(d) Once a week.

4. For Question 1, what should be written in the chart if just enough was spent on an item?
(a) A plus.
(b) A zero.
(c) A minus.
(d) A check.

5. Under which category does money paid to employ servants and service workers fall?
(a) Cultural.
(b) More is better.
(c) Keeping up with the neighbors.
(d) Work-related expense.

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

7. Why should people not budget their money?
(a) Budgeters are inclined to mathematical error.
(b) Budgeting takes time away from family activities.
(c) Budgeting increases spending.
(d) Budgeters feel as if they are giving up something they love.

8. If people spend half of their time sleeping, eating, and doing everything necessary for maintaining their bodies, then the other half is available for what?
(a) Keeping up with the neighbors.
(b) Managing money.
(c) Whatever they choose.
(d) Life energy.

9. Why should people ask themselves how they can help others to avoid pain they have experienced?
(a) To determine their real purpose in life.
(b) To take their minds off their financial issues.
(c) To find a new career option.
(d) To reduce stress.

10. What do advertisements teach Americans?
(a) Buy low, sell high.
(b) Work, work, and work some more.
(c) Consume, consume, and comsume some more.
(d) Relax, relax, and relax some more.

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

12. How should people reduce spending?
(a) By increasing awareness of how much life energy it takes to pay for each expense.
(b) By putting money in the bank.
(c) By staying home.
(d) By taking a lower-paying job.

13. What allows people to enjoy their planet, community, and spirituality more than ever before?
(a) Being green.
(b) Taking more vacations.
(c) Retirement.
(d) Living frugally.

14. What is the final part of Step 3?
(a) Figuring out how much life energy remains.
(b) Figuring out how much life energy went into each expenditure.
(c) Choosing expenses to eliminate.
(d) Determining net worth.

15. What broad category are alcohol and tobacco subcategories of?
(a) Occasional expenses.
(b) Recreational expenses.
(c) Acceptable expenses.
(d) Forbidden expenses.

Short Answer Questions

1. What three columns should record-keeping include?

2. The charts shown in the book for single people and couples are meant to be used how?

3. What is budgeting similar to?

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

5. Why should clothing be broken down into smaller categories, such as informal, work, sports, etc.?

(see the answer keys)

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