Explain what is meant by the term negative interest rate. Why can interest rate never be negative?

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Financial Institutions Markets And Money

ISBN: 9780470561089

11th Edition

Authors: David S. Kidwell, David W. Blackwell, David A. Whidbee, Richard W. Sias

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Question Posted: Mar 08, 2024 06:00 AM

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Explain what is meant by the term negative interest rate. Why can interest rate never be negative?

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A negative interest rate occurs when lenders effectively pay borrowers to take loans or hold onto their money In a conventional lending scenario borro...View the full answer

Financial Institutions Markets And Money

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