No, the bank can loan out 95 strawberries. If those 95 loaned strawberries are deposited in another bank, that bank can loan out (95*.95) strawberries. If those strawberries are loaned out, and deposited again, now we're up to (95*.95*.95) strawberries, and an equal number of strawberry IOUs. If this process happens an infinite number of times, eventually the number of strawberry IOUs will be 2000. But every single deposit or loan will have involved a real strawberry.

Again, the government actually can create fiat currency by taking a piece of paper and writing "$100" on it, but fractional reserve banking always balances inputs and outputs. And despite what somebody upthread implied, it's been around since the middle ages.