Several Studies Have Examined the Relationship Between IQ and Social

question 121

Multiple Choice

Several studies have examined the relationship between IQ and social class,race,and ethnic background.What conclusion has been drawn from these studies?

• A) European-American children tend to outscore all other racial or ethnic groups on standardized tests of intelligence.
• B) There are no racial and ethnic differences in IQ scores in the United States.
• C) There is considerable overlap in the IQ distributions of African-American and European-American children.
• D) Future IQ and accomplishments of a given individual can often be predicted on the basis of that person's race or ethnic background.

---

Definitions:

Discount Rate

The interest rate used to discount future cash flows to their present values, often used in investment appraisal and risk assessment.

Duration

The measure of the sensitivity of the price of a bond or other debt instrument to changes in interest rates, often expressed in years.

Coupon Bond

A type of bond that pays the holder interest payments at fixed intervals (usually annually or semi-annually) until the bond matures, at which point the principal amount is repaid.

Interest-Rate Risk

The potential for investment losses that result from a change in interest rates, affecting the value of fixed-income securities inversely.