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
why

The correct answer for the question that is being presented above is this one: "(C)$2,000." 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 $2,000.

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