Use the Following to Answer Questions: Table: Willingness to Pay

question 3

Multiple Choice

Use the following to answer questions: Table: Willingness to Pay $$\begin{array} { l c c } \hline { \text { Maximum Willingness to Pay for Good A and Good B } } \\\hline & \text { John } & \text { Mary } \\\hline \text { Good A } & \$ 90 & \$ 35 \\\text { Good B } & \$ 30 & \$ 70 \\\hline\end{array}$$
-(Table: Willingness to Pay) Refer to the table. What is Mary's maximum willingness to pay for the bundled goods?

• A) $70
• B) $30
• C) $120
• D) $105

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Definitions:

Excess Reserves

The amount of reserve funds that a bank holds beyond what is required by regulations, which can be loaned out or invested.

Actual Reserves

The sum of money a bank holds in its vault or with the central bank, ready to satisfy withdrawal requests or comply with regulatory obligations.

Required Reserves

The minimum amount of funds that a bank must hold in reserve against deposits, as mandated by monetary authorities.

Excess Reserves

The reserves that banks hold over and above the legally mandated minimum to meet withdrawal demands.