Which one of the following best describes the term 39 Negative interest rate policy 39 sometimes see...........

Economic Affairs Money Supply and Monetary Policy

Which one of the following best describes the term 'Negative interest rate policy' sometimes seen in news?

Central bank pay interest rate.

Depositors pay regularly to keep their money with the bank

Bank pay interest rate to goverment

Central bank pay interest rate to other banks

Depositors pay regularly to keep their money with the bank.

A negative interest rate policy, or NIRP, is an uncommonly used monetary policy tool where a central bank will set target interest rates at a negative value.
The negative interest rates break through the lower bound of zero percent, which results in a scenario where saving costs money and borrowing brings in money.