Which of the Following Is Predicted by the Hindsight Bias

question 57

Multiple Choice

Which of the following is predicted by the hindsight bias?

• A) People will perceive that time goes by faster as they get older.
• B) It will be easier to remember events that happened in the recent past than to remember events that happened a long time ago.
• C) Events that have already occurred will be judged as being more likely to have occurred than they would have been before they occurred.
• D) Events that are easy to imagine will be judged as being more likely than events that are less easy to imagine.

---

Definitions:

Euribor

The interest rate at which banks lend to each other in euros within the Euro interbank market.

Par Value

The face value of the bond. The payment to the bondholder on the bond’s maturity date.

Ask Price

The lowest price a seller is willing to accept for an asset in the market.

Corporate Bond

A debt security issued by a corporation to raise funding, which offers interest payments to holders until maturity.