After the 2013 Terrorist Attack at the Boston Marathon, U

question 18

Multiple Choice

After the 2013 terrorist attack at the Boston Marathon, U.S. intelligence reports revealed that the Russian government had earlier warned that one of the alleged terrorists, Tamarlan Tsarnaev, was suspected of having ties to terrorists in Chechnya. Later it was learned that Tsarnaev had visited an area of Chechnya where terrorists had been apprehended. Confiscation of his brother's computer showed visits to jihadist websites. A commentator on these events blogged that it should have been obvious to U.S. intelligence agencies that the Tsarnaev brothers were planning an attack. The blogger MOST likely committed the thinking error of:

• A) Yes, because it often leads to judgment errors.
• B) No, because in many cases it provides a rapid "good enough" response.
• C) Yes, because it is the opposite of deliberate, rational-analytic, critical thinking.
• D) No, because it helps people who are not good thinkers make decent judgments.

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Definitions:

Call Penalties

Fees or costs that a borrower must pay a lender for the privilege of paying a loan off earlier than the agreed payment schedule.

Call Premiums

The amount by which the price of a callable bond or preferred stock exceeds its par value or redemption price, often stipulated as a penalty for early redemption by the issuer.

Coupon Rates

Interest rates specified on bonds or other fixed-income securities that issuers promise to pay bondholders annually, expressed as a percentage of face value.

Convertible Bonds

Bonds that can be converted into a predetermined amount of the company's equity at certain times during their life, usually at the discretion of the bondholder.