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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
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
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