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

Multiple Choice Questions

1. What is one difference a frugal person should consider when choosing between two similar vehicles?
(a) Resale values.
(b) Foreign-made vs. American-made.
(c) Prestige.
(d) Available options.

2. What should participants do if they don't make a living from their passion?
(a) Follow their passion unpaid.
(b) Abandon their passion until retirement.
(c) Find a new passion.
(d) Find a new job.

3. What are 1,001 SURE WAYS TO SAVE MONEY?
(a) Participants should look at their own expense lists and make their own list of ways to save.
(b) A list of strategies to achieve early retirement.
(c) A list of contacts for business networking.
(d) A list of coupon resources.

4. A line should be drawn connecting the current month's income to what?
(a) The previous year's income.
(b) The current month's expenses.
(c) The previous month's income.
(d) The previous month's expenses.

5. If people invest more money each month, what happens to the monthly interest?
(a) The interest becomes tax-deductible.
(b) The interest decreases each month.
(c) The interest increases each month.
(d) The interest must be withdrawn from the account.

6. What is the best thing to do with the interest received?
(a) Put the money under a mattress for a rainy day.
(b) Reinvest it.
(c) Purchase rental properties.
(d) Purchase a larger home as a hedge against inflation.

7. What is one sure way to save money?
(a) Stop trying to impress other people.
(b) Find a higher-paying job.
(c) Find alternative housing.
(d) Retire early.

8. What is the crossover point?
(a) When the amount of total income is lower than normal monthly expenses.
(b) When the amount of investment income is as high as normal monthly expenses.
(c) When the amount of investment income is lower than normal monthly expenses.
(d) When the amount of total income is as high as normal monthly expenses.

9. What is the recommended size of the wall chart?
(a) From 18 to 22 inches tall, and from 24 to 36 inches wide.
(b) From 18 to 24 inches tall, and from 22 to 36 inches wide.
(c) From 18 to 22 inches wide, and from 24 to 36 inches tall.
(d) From 18 to 24 inches wide, and from 22 to 36 inches tall.

10. If "work" is different from "paid employment," then which of the following is true?
(a) Retirement is the absence of work.
(b) Cleaning is only work when it's done by a paid professional.
(c) Work includes anything people do to provide a service, including cleaning the house.
(d) Volunteer jobs are not work.

11. What should frugal people research before purchasing items?
(a) Value, quality, and availability.
(b) Color, style, and multiple use.
(c) Popularity, quality, durability, and multiple use.
(d) Value, quality, durability, and multiple use.

12. What encourages family, friends, and neighbors to support the participant's goals in following this program?
(a) Making wall charts for them to use.
(b) Making retirement plans with them.
(c) Placing the wall chart in a public place.
(d) Asking them for a loan.

13. What do the authors warn job-hunters to avoid?
(a) Spending a lot of money on schemes to find the perfect job.
(b) Taking a job that requires relocation.
(c) Taking a job too closely connected to a hobby or passion.
(d) Taking the first offer that comes along.

14. 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.

15. What is Step 8 of the program?
(a) Estimate when the crossover point will take place.
(b) Further reduce monthly expenses.
(c) Retire.
(d) Track investment income.

Short Answer Questions

1. The numbers along the y-axis should increase by what increment?

2. The crossover point is based on what?

3. What should people be willing to do?

4. What are two tips for reducing transportation expenses?

5. How many credit cards should program participants keep?

(see the answer keys)

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