In Response to the Overvalued Dollar in the Early 1970s,the

question 5

Multiple Choice

In response to the overvalued dollar in the early 1970s,the German Bundesbank bought dollars and sold marks to keep the exchange rate fixed,gaining international reserves. The huge purchase of international reserves meant that the German monetary base began to ________,leading to ________ growth in the German money supply.

• A)decline;sluggish
• B)decline;rapid
• C)grow;sluggish
• D)grow;rapid

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Definitions:

Stanford-Binet

The widely used American revision (by Terman at Stanford University) of Binet’s original intelligence test.

Mental Age

A measure of intelligence test performance devised by Binet; the chronological age that most typically corresponds to a given level of performance. Thus, a child who does as well as the average 8-year-old is said to have a mental age of 8.

Divergent Thinking

Divergent thinking is a thought process or method used to generate creative ideas by exploring many possible solutions, often leading to unique and unconventional outcomes.

Mental Age

A measure of an individual's cognitive ability as compared to the average cognitive ability for their chronological age.