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Q: Why can't I create a selectbox grade item?

Selectbox grade items cannot be created in a course until a grade scheme has been defined in the course. Selectbox grade items cannot take advantage of the global grade schemes directly, but you can make a copy of the global scheme to use under the Grade Schemes link in Manage Grades.

Once you a grade scheme created, you will be able to create new Grade Items using the Selectbox type.