Consider the following situation in the Canadian banking system: - The Bank of Canada purchases $3 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 banks is 20 percent. - All commercial banks operate with no excess reserves. - There is no cash drain. If Bank XYZ increases its loans to the maximum extent possrble with its new excess reserves. the fourthgeneration banks will be able to expand their loans by O A. $1.23 million. 0 B. $0.62 million. 0 C. $0.49 million. G) D. $1.60 million. 0 E. $2.09 million