Consider the Following Situation in the Canadian Banking System: •

Consider the following situation in the Canadian banking system: • An investment dealer withdraws $10 million from its account at Bank XYZ to
Purchase government securities from the Bank of Canada.
• As a result,$10 million has been withdrawn from the Canadian banking system.
• The target reserve ratio for all banks is 10%.
• All commercial banks operate with no excess reserves.
• There is no cash drain.
TABLE 26-5
Refer to Table 26-5.Bank XYZ is immediately in a position to

A) decrease its loans by $100 million.
B) decrease its loans by $10 million.
C) decrease its loans by $9 million.
D) increase loans by $9 million.
E) increase loans by $10 million.