What caused so many European corporate bonds to have negative interest rates? Group of answer choices Inflation rates were consistently increasing

Economics Jun 22, 2021

What caused so many European corporate bonds to have negative interest rates?

Group of answer choices

Inflation rates were consistently increasing.

The European Central Bank cut interest rates to negative levels.

The European economy was growing at higher than normal rates.

Central banks were slowing asset purchases.

Expert Solution

Answer

The correct option is 2nd "The European Central Bank cut interest rates to negative levels".

Explanation

European Central Bank cut interest rates to negative levels to lower the value of the Euro. At the Time of Negative Interest rate, Bank stats charging money from customer for keeping their money in Bank account.

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