The Great Debate on Negative Interest Rates

The Great Debate on Negative Interest Rates

Assessment

Interactive Video

Business

University

Hard

Created by

Quizizz Content

FREE Resource

The video discusses the controversy surrounding interest rates from both investor and central bank perspectives. It delves into the impact of negative rates on profitability, particularly for European banks, and explores the divide between academic theories and practical realities. The video also examines how banks are adapting to negative rates, the role of regulations, and the effects on bank employees' compensation. Key figures and theories are highlighted, including the debate on the zero bound and the implications for equity prices and loan demand.

Read more

3 questions

Show all answers

1.

OPEN ENDED QUESTION

3 mins • 1 pt

What strategies are banks employing in response to negative interest rates?

Evaluate responses using AI:

OFF

2.

OPEN ENDED QUESTION

3 mins • 1 pt

What feedback loop is created by the relationship between bank share prices and employee bonuses?

Evaluate responses using AI:

OFF

3.

OPEN ENDED QUESTION

3 mins • 1 pt

How do regulatory changes impact banker bonuses in the context of negative rates?

Evaluate responses using AI:

OFF