Chapter 9

Question 1

According to the author, the only time to ask for more money at work is when you are first hired. T or F

Answer 1

False

Question 2

The main point of the Power Process: “Risk being a fool,” is that mastery in most activities calls for the willingness to do something new, to fail, to make corrections, and to fail again, and so on. T or F

Answer 2

True

Question 3

The author suggests that the way you handle money is a clue about your values. An example of this is the amount of money that you spend on clothes shows how much you value your appearance. T or F

Answer 3

True

Question 4

It is never too early to start planning for your retirement T or F

Answer 4

True

Question 5

It is never too early to start planning for your retirement

T or F

Answer 5

True

Question 6

Ending money worries can include

Answer 6

Doing both answer choices *****
Increasing your income
Decreasing your expenses

Question 7

Cooking for yourself instead of eating out significantly lower your expenses. T or F

Answer 7

True

Question 8

Strategies for using credit cards effectively do NOT include

Answer 8

All of the answer choices
using several credit cards so that you can spread around your unpaid balances ****
avoiding cash advances
paying off the full balance due each month
choosing cards with no annual fees and lower interest rates.

Question 9

The strategies for protecting your credit score do NOT include

Answer 9

using your credit cards as sources of cash *****
paying off the entire balance on your credit cards each month.
avoiding applying for more credit cards
paying all your bills on time.

Question 10

Research indicates that higher education is associated with

Answer 10

Higher levels of volunteer work
a greater likelihood of being employed 
higher income
higher job satisfaction
all of the above choices ******

Question 11

One strategy for money management is to take a percentage of every paycheck and deposit that amount into savings account. The suggestion in the text is to start by saving.

Answer 11

5 to 10 percent of your paycheck ****
15 to 20 percent of your paycheck
25 to 30 percent of your paycheck
1 to 3 percent of your paycheck

Question 12

The main steps for money management suggested in this chapter include

Answer 12

commit to live within your means by spending less than you earn (intention)

All of the above answers ***

tell the truth about how much money you have an d how much you spend (discovery)

experiment with suggestions for earning more money, spending less money, or both (action).

Question 13

Which of the following is NOT a suggestion for managing money during tough times.

Answer 13

drop your health insurance ***
invest only after savings
doing a great excellent work at your current job
put your financial plan in writing

Question 14

Strategies for using credit cards effectively include

Answer 14

using cash advances on it whenever you want to do so.

gettin a card that offers the best points program even if the interest rate is not the lowest.

using your credit card instead of your debit card

paying off the full balance every month ****

Question 15

According to the text, there is little advantage to shopping around for different lenders of student loans . T or F

Answer 15

False

Question 16

The text asserts that investing in your education is safer than investing in real estate, gold oil, diamonds. T or F

Answer 16

True

Question 17

The main steps for money management suggested in this chapter include:

Answer 17

1) Focus on increasing your income, and spend as much as you want.
2) Focus on decreasing your expenses, and don’t worry about how much your earn.
3) Increase your income, decrease your expenses, or do both. ****
4) None of the answer choices

Question 18

According to the text, what is the biggest factor in your long-term financial well being?

Answer 18

1) The state of the overall economy
2) The interest rates on your credit cards
3) Your daily behavior *****
4) None of the answer choices

Question 19

Privately-owned companies generally offer better student loans than the federal government. T or F

Answer 19

False

Question 20

The main point of the Power Process, “Risk being a fool” is that mastery in most activities calls for the willingness to do something new, to fall, to make corrections to fall again. T or F

Answer 20

True

Question 21

The 3 major types of financial aid do not include:

Answer 21

1) Money that you don’t have to pay back
2) Money that you do have to pay back
3) Work-study assignments
4) Full-ride scholarships ****

Question 22

Strategies for using credit cards effectively do not include:

Answer 22

1) Choosing cards with not annual fees and lower interest rates.
2) Paying off the full balance due each month.
3) Avoiding cash advances
4) Using several credit cards so that you can spread your unpaid balances. ***

Question 23

The text recommends that you save for long-term goals such as retirement before you have an emergency fund in place. T or F

Answer 23

False

Question 24

According to the text, students who drop out of school for financial reasons can often benefit by stating the problem as

Answer 24

1) I cant afford it
2) I don’t know how to pay for it
3) I don’t think its worth it
4) Both 1 and 3
5) Both 2 and 3 ***

Question 25

The text suggests that you manage money based on the belief that there are limits to how much money your can earn. T or F

Answer 25

False - - ability to earn is unlimited

Question 26

According to the text, the best way to begin cutting expenses is to look at how much you spend on “small ticket” (low cost) items over the course of an entire year. T or F

Answer 26

False —Big ticket items that cost the most.