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Question 6 (0.5 points) Consider the following situation in the Canadian banking system: . An investment dealer withdraws $10 million from its account at Bank

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Question 6 (0.5 points) 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 As a result, $10 million has been withdrawn from the Canadian banking system.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. Refer to the above information. As a result of this withdrawal from the banking system, the Canadian banking system would eventually a) increase its loans by $90 million. O b) decrease its loans by $10 million. O c) decrease its loans by $100 million. O d) decrease its loans by $90 million. O e) increase its loans by $100 million

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