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Q28: Since it has become known that several of a bank’s top executives have been buying shares in their own bank, the bank’s depositors, who had been worried by rumors that the bank faced impending financial collapse, have been greatly relieved.They reason that since top executives evidently have faith in the bank’s financial soundness, those worrisome rumors must be false.They might well be overoptimistic, however since corporate executives have sometimes bought shares in their own company in a calculated attempt to dispel negative rumors about the company’s health.
In the argument given, the two boldfaced portions play which of the following roles?
- The first summarizes the evidence used in the reasoning called into question by the argument; the second states the counterevidence on which the argument relies.
- The first summarizes the evidence used in the reasoning called into question by the argument; the second is an intermediate conclusion supported by that evidence.
- The first is an intermediate conclusion that forms part of the reasoning called into question by the argument; the second is evidence that undermines the support for this intermediate conclusion.
- The first is an intermediate conclusion that forms part of the reasoning called into question by the argument; the second is the main conclusion of the argument.
- The first is an intermediate conclusion that forms part of the reasoning called into question by the argument; the second states a further conclusion supported by this intermediate conclusion.
Answer:
Several of a certain bank’s top executives have recently been purchasing shares in their own bank.This activity has occasioned some surprise, since it is widely believed that the bank, carrying a large number of bad loans, is on the brink of collapse.Since the executives are well placed to know their bank’s true condition, it might seem that their share purchases show that the danger of collapse is exaggerated.However, the available information about the bank’s condition is from reliable and informed sources, and corporate executives do sometimes buy shares in their own company in a calculated attempt to calm worries about their company’s condition.On balance, therefore, it is likely that the executives of the bank are following this example.
In the argument given, the two boldfaced portions play which of the following roles?
- The first describes the circumstance the explanation of which is the issue that the argument addresses; the second states the main conclusion of the argument.
- The first describes the circumstance the explanation of which is the issue the argument addresses; the second states a conclusion that is drawn in order to support the main conclusion of the argument.
- The first provides evidence to defend the position that the argument seeks to establish against opposing positions; the second states the main conclusion of the argument.
- The first provides evidence to support the position that the argument seeks to establish; the second states a conclusion that is drawn in order to support the argument’s main conclusion.
- Each provides evidence to support the position that the argument seeks to establish.
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