Negative Interest Rates - Explained: True Negative Rates

Negative Interest Rates - Explained: True Negative Rates

Assessment

Interactive Video

Business

7th - 12th Grade

Hard

Created by

Quizizz Content

FREE Resource

The video explains the concept of negative interest rates, where lenders pay borrowers. It discusses why major financial institutions and governments invest in negative yield bonds, focusing on the Japanese bond market and currency stability. The video also covers the concept of future value and how investors can profit from negative rates. It addresses concerns about the impact on regular savers and concludes with speculation on the future of negative interest rates.

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2 questions

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1.

OPEN ENDED QUESTION

3 mins • 1 pt

What are the potential risks associated with negative interest rates for regular savers?

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2.

OPEN ENDED QUESTION

3 mins • 1 pt

Discuss the implications of negative interest rates becoming a widespread reality.

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