Researchers Identified Some Infants as "Inhibited" and Some as "Uninhibited

question 150

Multiple Choice

Researchers identified some infants as "inhibited" and some as "uninhibited" at the age of 4 months. When these same children were tested again at the age of 7 1/2

• A) the differences between the two groups had disappeared.
• B) "inhibited" children had actually become more outgoing than the "uninhibited" children.
• C) "inhibited" children tended to be fearful, nervous, and shy.
• D) "uninhibited" children were more likely to be diagnosed with attention-deficit disorder.

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Definitions:

Net Present Value

A valuation method that calculates the value of future cash flows in today's dollars by discounting them at a particular rate.

Internal Rate Of Return

The critical interest rate that nullifies the net present value of cumulative cash flows from a project.

Discount Rate

The interest rate charged to banks for borrowing short-term funds directly from the Federal Reserve, or broadly, the interest rate used to discount future cash flows to present value.