Why Would Anyone Accept a Negative Interest Rate? #Shorts | Economics Explained

Why Would Anyone Accept a Negative Interest Rate? #Shorts | Economics Explained

Assessment

Interactive Video

Business

7th - 12th Grade

Hard

Created by

Quizizz Content

FREE Resource

The video tutorial explains the concept of negative yields, where investors receive less money than they invest in bonds. It highlights that large institutions often buy these bonds for safety, as regular bank accounts are insufficient for their vast sums of money. The tutorial also discusses how government bonds are considered safe investments, backed by the government, and how companies like Apple might choose to invest in foreign bonds to hedge against currency inflation.

Read more

1 questions

Show all answers

1.

OPEN ENDED QUESTION

3 mins • 1 pt

What new insight or understanding did you gain from this video?

Evaluate responses using AI:

OFF