Consider the Following Situation in the Canadian Banking System: •

Consider the following situation in the Canadian banking system: • The Bank of Canada purchases $5 million worth of government securities
From an investment dealer with a cheque drawn on the Bank of Canada.
• The dealer deposits this cheque at Bank XYZ,a commercial bank.
• The target reserve ratio for all commercial banks is 25%.
• All commercial banks operate with no excess reserves.
• There is no cash drain.
TABLE 26-4
Refer to Table 26-4.The maximum creation of new deposits by the banking system,including the dealer's original deposit at Bank XYZ,is

A) $25 million.
B) $22.5 million.
C) $20 million.
D) $15 million.
E) $5 million.