Assume that Atlantic National Bank has demand deposits of

$100,000

and no excess reserves, and that the reserve requirement is 10 percent.A customer withdraws

$5,000

from the bank. To meet the reserve requirement, the bank must increase its reserves by\ (A)

$500

\ (B)

$1,000

\ (C)

$2,000

\ (D)

$4,000

\ (E)

$4,500

2. Assume that Atlantic National Bank has demand deposits of $100,000 and no excess reserves, and that the reserve requirement is 10 percent. A customer withdraws $5,000 from the bank. To meet the reserve requirement, the bank must increase its reserves by (A) $500 (B) $1,000 (C) $2,000 (D) $4,000 (E) $4,500