Question 18: On 29 October Philip Lowe the RBA Governor gave a speech 'Some Echoes of Melville' where he discussed negative bond yields. Which of the following statements is NOT

a reason that the RBA governor gives for lowerglobal yields on debt? (a) Higher savings rates by the growing amount of old people who are living longer andneed to save more to finance their retirement. (b) Lower savings rates in Asia compared to the world due to Asia's more extensive social safety nets, such as their high government pensions and ease of qualifying for the pension. (c) Lower expectations of future economic and productivity growth. (d) Central banks buying government bonds for the purpose of Quantitative Easing whichseeks to force bond prices up and yields to maturity down. (e) Pension and superannuation funds buying bonds to fund their long term pensionliabilities.