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In mid 2021, an article in the Wall Street dunkel noted that the European Central Bank had been pay government bonds, such as Germany: 10

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In mid 2021, an article in the Wall Street dunkel noted that the European Central Bank had been pay government bonds, such as Germany: 10 year bond wore nogalme: find some European bonds Find an saying. 'I wouldn't mind rocoming nothing for my deposit, but boing linked to pay is pet too much Source: Patricia Kowamann, "Banks in Germany Tell Customers to Take Deposits Elsewhere,"Wal Sew Jound, March 1, 2021. Why was the European Central Hank paying a negative irtorest rate on banks' ichange? A Long form interest rates were so low after rounds of central bank contractionary policy that bored youds witp pushed nagslive O B. Long-term intodost robes wore so high after rounds of contial bank expansionary policy that biged youths were puthed negative ()C. The prices of some long-term ECB bonds had fallon to such low loveis that the yolds on the bonds were actualy negrin D. The prices of some long-form EGH bonds had nsen to such high levels that the yields on the bonds were actually pepsiive Why are investors willing to buy German government bonds with a negative interest rate? Q A. They believed that there was no chance the German government would dobault on its bonds while the debaut risk on corporate bonds and buck depoets was high because interest mins ware so low Q-B. Concerns over the stability of the European Central Bank meant that German bonds were more attractive to investors O G. They beloved that there was no chance the Gorman government would default on its bonds, while the default risk on corporate bonds and bank deposits was high bucsung stores talos wei is high O D. Other countries were defaulting on their bonds, while Germany was not. What actions would you expect depositors in Germany to take in response to German banks pirying negative interest rates on bank deposit? O A. Depositors would put more money into the banks and use more credit for transactions since interest rates were so low Q B Depositors would put more money into the banks in the hopes of driving the interest rate up on bank doposts Q C. Depositor would pulltheir money out of the banks and probably begin using more cash for transactions

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