Based on the case study "Negative Interest Rates? Japan First, Then the United Sates. Then Europe" consider the following scenario:

In a low$-$inflation environment, a central bank introduces a negative interest rate policy $($N$.$RP$)$ on excess reserves held by commercial banks. Shortly after, the yield on $6-$month government securibies falls to $-0\mathrm{.}05\%.$ An institutional investor must choose between holding these negative$-$vield securities or keeping cash. Assume the investor has no access to physical cash storage and must operate through electronic means.

Which of the following best explains why the investor might rationally prefer to purchase the negatively yielding bonds rather than hold cash, even when the yield to maturity is negative?

Because even with a negative vield, bonds offer higher real returns than cash in times of seflation.

bonds or deposits than to store physical cash, and central bank reserves may offer indirect benetits mach as liguidity services or collateral use

Because the investor antklpates that future bond prices will rose, alowing them to sell the bond at a capieal gain before maturity.

Because holding cash in a low inflation environment guarantees a higher nominal return than a nepuove, wedd bond.