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

Multiple Choice Questions

1. How should investment income be tracked?
(a) Combined with monthly expenses.
(b) Separately from other income.
(c) Combined with other income.
(d) Subtracted from monthly expenses.

2. What can cause some people to stop buying any extras at all, after starting to use the wall chart?
(a) Running out of room on the wall chart.
(b) Desire to change thier life purpose.
(c) Shock at their spending habits.
(d) Shock over actual income.

3. What is the main pitfall of combining work with true passion or enjoyment?
(a) Having to compromise in order to satisfy someone else.
(b) Enjoyment goes against the puritan work ethic.
(c) Enjoyable jobs don't command respect.
(d) Passion doesn't always make up for lack of talent.

4. What is Step 7?
(a) Minimizing debt.
(b) Increasing life energy.
(c) Maximizing income.
(d) Reducing clutter.

5. The wall chart should accommodate data for how long?
(a) Until retirement.
(b) Five to seven months.
(c) Seven to ten years.
(d) Five to seven years.

6. Why do people feel very free when volunteering?
(a) Volunteering can lead to job offers.
(b) Volunteer work is unpaid.
(c) Volunteering requires no skill.
(d) Because they do not have to be there, and can do things their way.

7. What is Step 6?
(a) Creating a wall chart.
(b) Minimizing spending.
(c) Determining net worth.
(d) Planning for retirement.

8. What is one advantage of estimating the likely timing of the crossover point?
(a) People tend to leave their current job for a more enjoyable one.
(b) People retire early.
(c) People may become more eager about going to work and doing a good job.
(d) People spend less.

9. What should people be willing to do?
(a) Sacrifice income for a job that matches a passion.
(b) Sacrifice family time for more income.
(c) Work more than 40 hours per week.
(d) Work for what they want.

10. The top number on the y-axis should be at least how large?
(a) Twice as large as the participant's expected income.
(b) Three times as large as the participant's expected income.
(c) Twice as large as the participant's expected expenses.
(d) Equal to the participant's expected income.

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(b) The interest must be withdrawn from the account.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

12. 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 short-term interest rate for U.S. Treasury bonds, then multiplying by 12.
(d) Multiplying it by the current long-term interest rate for U.S. Treasury bonds, then multiplying by 12.

13. 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) Asking them for a loan.
(c) Making retirement plans with them.
(d) Placing the wall chart in a public place.

14. What is the best method of choosing which expenses to reduce or eliminate?
(a) Add up the plusses and minuses on the monthly chart.
(b) Use answers to the three questions from Chapter 4.
(c) Use answers to the three questions from Chapter 3.
(d) Compare income to expenses on the wall chart.

15. A person's crossover point is an estimate based on which type of expenses?
(a) Food and housing only.
(b) Monthly expenses while they are working.
(c) Monthly expenses after retirement.
(d) Food, housing, insurance, and health.

Short Answer Questions

1. What percentage of useful life objects could people add if they were not so anxious to replace them?

2. What is the recommended size of the wall chart?

3. What is the most important strategy in following Step 7?

4. Most of the 101 SURE WAYS TO SAVE MONEY have what added benefit?

5. What may reaching the crossover point cause participants to do?

(see the answer keys)

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