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

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.

What are negative yields in the context of bonds?

Why would large institutions choose to invest in bonds with negative yields?

What is the insurance limit for regular bank accounts in the US?

How do government bonds provide security to investors?

What factors might influence a company's decision to invest in foreign bonds?