View a FREE sample

This test consists of 5 short answer questions, 10 short essay questions, and 1 (of 3) essay topics.

Short Answer Questions

1. What is budgeting similar to?

2. What do advertisements teach Americans?

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

4. What will eventually run out?

5. For Question 1, what should be written in the chart if just enough was spent on an item?

Short Essay Questions

1. Why is it beneficial to be specific with categories, rather than more general?

2. Whenever people spend money, what more valuable commodity are they also spending?

3. Why is Step 4 considered the heart of the program?

4. Where does the "rat race" come from?

5. What do the two parts of Step 2 allow program participants to track?

6. What is the final part of Step 3? How is this accomplished?

7. What are the three perspectives of money the authors ask program participants to reject? Include brief descriptions.

8. Compare a person's typical response to a long-term threat with the typical response to an immediate threat.

9. What is the first part of Step 1? What is its purpose?

10. How should program participants use the charts at the end of Chapter 3?

Essay Topics

Write an essay for ONE of the following topics:

Essay Topic 1

What is the difference between a cushion and a cache? Is one more desirable than the other is? Which will a program participant obtain first?

Essay Topic 2

Why should people try their best to get out of debt, when credit cards are readily available? Why should people save a six-month cushion? What is the real meaning of financial independence?

Essay Topic 3

Expand upon the authors' comparison between budgeting and dieting. Why are honest record-keeping and frugality better tools for managing finances than a budget? What terms would parallel record keeping and frugality, in terms of managing food intake?

(see the answer keys)

This section contains 681 words (approx. 3 pages at 300 words per page) View a FREE sample