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∙ As a result,$10 million has been withdrawn from the Canadian banking system.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.As a result of this withdrawal from the banking system,the Canadian banking system would eventually

A) decrease its loans by $100 million.
B) decrease its loans by $90 million.
C) decrease its loans by $10 million.
D) increase loans by $90 million.
E) increase loans by $100 million.