Situations of negative interest rates on short-term bonds resulted from
A) high income tax rates.
B) government regulations requiring financial firms to purchase government bonds.
C) very low risk premiums.
D) investors looking for safe havens when other investments were perceived to be very risky.

Question

Quizplus · Accepted Answer

Negative interest rates on short-term bonds often occur when investors are seeking safe havens due to perceived risks in other investment options, leading them to accept negative returns for the perceived safety of government bonds.

Situations of Negative Interest Rates on Short-Term Bonds Resulted from